10-16 IAT Apples and Sugar Beets

Northwest Farm Credit Services VP - Market Research and Development, Michael Stolp gives his quarterly snapshot of apple and sugar beet prices in the NW.The 2013 sugar beet harvest is underway in the Northwest. Growers are experiencing average to below-average yields. A large percentage of replants and sporadic weather reduced yields and sugar beet size. High domestic sugar supplies increased 2013 Mexican sugar imports, and low global prices create a bearish market. With lower prices and lower yields, Northwest sugar beet growers' profit margins continue to decline. Producers should experience small profits in 2013—14, assuming prices remain above $40 per ton.

 

The outlook for the Northwest apple industry is tempered from last season. For 2013-14, the second largest crop in Northwest history is matched with a rebound in the North American apple crop. Average apple prices are expected to decrease. Early season markets are likely to be pressured as Northwest apples impacted by extreme heat, and excess fruit in competing regions, is pushed into the market. As higher quality fruit is pulled from storage in early 2014, prices should rebound from projected season lows. Overall, the Northwest apple industry is anticipated to remain profitable this season, but not to the same degree as last year.