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June 1, 2018 CapitalPress.com 5 Researcher perfects wine colors By DAN WHEAT Capital Press Robert Hubner/WSU Jim Harbertson, Washington State University enologist, discovered sulfur dioxide management is important in developing shades and tints of color in rosé wine. PULLMAN, Wash. — A Washington State University enologist has become an ex- pert in the art and science of fine-tuning rosé wine colors. Asked by Washington wine- makers how to more precisely develop wine colors, associate professor Jim Harbertson and graduate student Caroline Mer- rell have found that sulfur diox- ide management is an important factor in rosé wine color. They have come up with a guide for winemakers to fol- low that allows them to predict color changes analytically and achieve that gorgeous shade of ballet-slipper-pink or deep rouge. “What’s significant is that our study provides tools to winemakers to measure ap- parent and potential color in their rosé wines. There’s more science and less guesswork in- volved,” Harbertson said. Rosé was considered as sweet and cheap about a de- cade ago, but now it’s regarded as chic and sophisticated. Sales rose 40 percent in 2017, accord- ing to Nielsen market research. “More than other wine types, color heavily influences consumers’ perceptions of rosé. This makes winemakers par- ticularly mindful of achieving just the right color,” Harbertson said. Rosé stands apart from other wines in its diversity of hues, shades and tints. Though aroma and flavor are important to con- sumers, studies say the number one factor is its pinkish charm. Rosé’s color also signifies its style. A light-colored rosé is expected to be a lighter-bodied wine and a darker one to be more full-bodied, Harbertson said. The trick to perfecting color is the timing of exposing dark wine grape skins to juice, 2 to 48 hours, with the wine lighten- ing during fermenting and dark- ening after bottling. “Rosé may be easy to drink but it is not easy to make,” he said. His study was recently pub- lished in Catalyst, a journal by the American Society for Enol- ogy and Viticulture. Apple Commission adopts budget, talks trade, varieties By DAN WHEAT Capital Press WENATCHEE, Wash. — The Washington Apple Com- mission approved a status quo $10.2 million budget for 2018-19 and discussed trade, promoting proprietary variet- ies and grocery e-commerce in China at its May 24 meet- ing. The budget includes about $4.7 million in revenue from a 3.5-cent per box grower assessment on the 2018 crop estimated at 135 million box- es, $4.87 million from the federal Market Access Pro- gram, $545,000 in grants and $100,000 from interest and rented office space. The commission will spend $7.4 million on export promotions, with $4.87 mil- lion of that from MAP and $2.56 million from grower assessments. The top six countries and their promotional allocations are: • India: $1.25 million, up $280,000. • Mexico: $1.14 million. • Vietnam: $667,750. • Central America: $518,000. • Indonesia: $484,300, down $67,450 because of ac- cess issues. • China and Hong Kong: $466,000, down $419,693 be- cause of access issues. Apples have been caught up in Chinese retaliatory tar- iffs that are responses to U.S. tariffs on Chinese steel and aluminum, but the situation is fluid with negotiations are ongoing. In recent days, India add- ed a 30 percent tariff on ap- ples in retaliation for the U.S. steel and aluminum tariffs. That’s on top of its regular 50 percent apple tariff, said Mark Powers, president of Dan Wheat/Capital Press File The Washington Apple Commission will spend $7.4 million on export promotions during the coming year. the Northwest Horticultural Council in Yakima. Jason Hafemeister, trade counsel to the Secretary of Agriculture, gave commis- sioners a 45-minute telephone tutorial on trade. More than 20 percent of U.S. agricul- tural production is exported, he said. While the U.S. runs an overall trade deficit it has a surplus in agricultural com- modities and products, he said. China recognizes the U.S. trade deficit is a problem and is willing to help by importing more agricultural products, he said. A new North American Free Trade Agreement does not appear close and the pres- ident has to decide by June 1 whether to impose steel tariffs on Canada and Mexico, Hafe- meister said. Powers said market threats to U.S. ag products seem to be growing. Apple Commis- sioner Bob Mast, president of Columbia Marketing In- ternational in Wenatchee, said there’s a lot of nervousness about tariffs hurting cherry exports to China. Regarding foreign promo- tions of proprietary varieties, Mast called it a slippery slope of keeping promotions pro- portionate to the varieties that generate the most in grower assessments. Rebecca Lyons, the com- mission’s export marketing director, also said it would be a slippery slope to push single varieties and that she doesn’t want to, but importers and overseas retailers are interest- ed in new proprietary varieties and promoting them increases shelf space and positions the commission for the future. Commission President Todd Fryhover said he will educate himself more on how individual companies already promote proprietary varieties and seek the advice of Mast and other commissioners on how to proceed. Fryhover reported that Hema Supermarkets, part of the Alibaba Group in China, is leading the way in merging online and offline sales. Cus- tomers order online, have gro- ceries delivered or go to the store and have them prepared into a meal to be eaten there. “It’s amazing what they are doing in China with e-com- merce. It has to be a model for the rest of the world,” he said. “We think it’s a major trend moving forward.” Wheat Marketing Center seeks new technical director By MATTHEW WEAVER Capital Press The Wheat Marketing Center is looking for a new technical director after Gary Hou departed April 30 to take a position as chief technology officer with the SPC Group, a baking company in South Korea. Hou was at the marketing center more than 22 years. He was first hired as an Asian products specialist and was promoted to technical manag- er in 2000 and technical direc- tor in 2005. The job opening has been posted on the marketing cen- ter’s website and several pro- fessional websites, said Janice Cooper, executive director of the marketing center. Cooper is asking stake- holders, including U.S. Wheat Associates and state com- missions, to consider priority products and markets they want to focus on, as well as weighing the skills of the mar- keting center’s current team. “It’s still under consider- ation exactly what kind of a person we’re looking for,” Cooper said. All of the marketing cen- ter’s activities and courses are covered for this year, allowing time for an extensive search, George Plaven/Capital Press File Gary Hou, technical director of the Wheat Marketing Center in Portland, has taken a job with a South Korean company. Cooper said. Cooper expects crackers and noodles to continue to be a major focus for the market- ing center. Markets in Asia and Latin America are top pri- orities, she said. In an email to the Capital Press, Hou said he trained more than 1,000 profession- als from around the world, published more than 30 peer-reviewed scientific pa- pers and generated more than $2 million in revenue through research and product devel- opment projects while at the marketing center. He felt his technical expertise would be well-used in a commercial company where he could have a direct impact. At SPC Group, Hou man- ages several products and helps with wheat procure- ment, flour milling produc- tion, flour blending and devel- oping specialty flours. “I am very proud of U.S. wheat farmers for growing one of the highest quality wheats in the world,” Hou said. He recommended farmers consider the needs of food processors when they decide which variety to plant. “Providing the required wheat and food products to our respective customers is the only recipe for continued success in business for all of us,” he said. After working for the mar- keting center, Hou said, he has become a U.S. wheat user and buyer. “It has become very inter- esting to look at the same sub- jects from a different perspec- tive,” he said. “I hope my new experience will help the U.S. wheat industry to align its ef- forts with customers’ needs.” The marketing center works to create a deeper un- derstanding for the value of U.S. wheat in high-quality end products, Cooper said. Carol Ryan Dumas/Capital Press Jon Maughn, managing director and vice president of Rabo AgriFinance in Twin Falls, Idaho, at the Rabobank office on May 22. Dairy lenders look to the long game By CAROL RYAN DUMAS Capital Press TWIN FALLS, Idaho — An extended period of low milk prices has made things challenging on dairy farms across the country, giving rise to concerns over what awaits dairy farmers looking for their next loan. But two big lenders in the Northwest and Idaho say they’re in it for the long term and sticking by their dairy clients. Producer margins have been compressed for more than three years, Doug Rob- ison, Northwest Farm Credit Services’ senior vice presi- dent for western Idaho, said. While there have been periods of profitability, the average annual pay price for milk has generally been be- low the cost of production needed to support operating expenses, capital replace- ment needs, and principal debt repayment, he said. Despite the tough times, NWFCS will continue to offer the same products and services to dairies — one of its largest financed sectors, he said. As a customer-owned co- operative, NWFCS remains committed to financing ag- riculture, food and fiber throughout the Northwest, he said. “Our strategy remains consistent and includes even-handedness through in- dustry cycles,” he said. This cycle will run its course, and there will be stronger industry profitabili- ty in the future, he said. “Producers need to re- main focused on managing costs, protecting capital and marketing their product,” he said. Milk prices in the first half of 2018 have been low, below the price needed to generate profitability. The Class III price for milk to manufacture cheese will av- erage about $14.50 per hun- dredweight in the first half of 2018, and average cost of production in Idaho in 2017 was about $16.70 per hun- dredweight, he said. Milk prices have been strengthening over the past few weeks, however, and milk futures indicate break- even or above prices in the $16.75 range during the second half of the year. Re- cent strength in butter and cheese markets supports the improved outlook for milk prices, he said. “This has led to some op- timism for pay prices in the second half of the year and even into 2019,” he said. Idaho dairy clients with Rabo AgriFinance have been operating at a loss for the past six to 10 months, particularly in the first quarter of this year with milk prices in the $12 to $13 range, Jon Maughan, the company’s managing direc- tor for southern Idaho, said. “I think we’re through the worst of it, so (I’m) cautious- ly optimistic,” he said. It hasn’t been pretty, but exceptional prices in 2014 made it tolerable. Most pro- ducers learned lessons from the downturn in 2009 and held onto capital, he said. “Most balance sheets are in good shape, with the ex- ception of several operations that have not recovered from 2009,” he said. There’s been some con- solidation and voluntary liquidation, but there’s been very little forced liquidation, he said. “We feel like our portfo- lio is above average. We’ve done really good with cus- tomer selection,” he said. Rabo had extremely lim- ited penetration in the area’s dairy business before 2011, and in 2011 and 2012 had the opportunity to hand pick who it wanted to do business with — the survivors of 2009, the longtime players, he said. “Our strategy really hasn’t changed. We still continue to look for additional business with dairies,” he said. The company now has a large dairy portfolio in Ida- ho. Its mandate is to “book good business,” and that hasn’t changed at all, he said. WE SPECIALIZE IN BULK BAGS! BAGS: • Seed Bags • Fertilizer Bags • Feed Bags • Potato Bags • Printed Bags • Plain Bags • Bulk Bags • Totes • Woven Polypropylene • Bopp • Polyethylene • Pocket Bags • Roll Stock & More! 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