Fresh Produce Discussion Blog

Created by The Packer's National Editor Tom Karst

Sunday, November 2, 2008

Honeycrisp has arrived

Honeycrisp apples have arrived in the mainstream. How so? Well, yesterday I picked up a 3-pound bag of honeycrisp apples at Aldi in Olathe for the smoking price of $3 something. VP candidate Sarah Palin recently visited a Pennsylvania apple orchard where she was given - you guessed it - a honeycrisp apple.

The honeycrisp is a wonderful eating apple, but its surging popularity among growers for its high f.o.b. prices the past few years has boosted acreage throughout the U.S. This recent article checks in the apple breeders at the University of Minnesota about the expiring patent for the honeycrisp in the U.S. and the status of the variety internationally.

As the article notes, "millions of trees" have been planted to honeycrisp as grower shippers are beginning to catch up with demand. From a practical perspective, that means rising supplies are beginning to force down f.o.b. prices that in the past have flirted with $50 per carton. While, honeycrisp prices at retail still bring a premium and are typically well above $2 per pound for bulk displays I have seen lately, they are getting more affordable. From the story in mndaily.com:

Although Nov. 7 marks the end of the University of Minnesota’s patent on the Honeycrisp apple, horticulture Professor Jim Luby said apple lovers should have no fear — the Honeycrisp will still be available for years to come, and possibly at a cheaper price.

The fruit has brought in millions of dollars for the University, and its expiration could make way for a string of imitators.

Dave Bedford, an apple breeder and research scientist at the University, said a patent extension isn’t an option for U.S. horticulture patents.

Overseas, however, the Honeycrisp patent will continue to bring in money for the University; Luby, who helped Bedford develop the apple, estimated the international patent would remain for the next 15 years.

Since the University has trees in other countries, like in a recent agreement with New Zealand, Luby said, Honeycrisp apples should be pouring into U.S. grocery stores well into the winter.

The purchase of a Honeycrisp tree, approximately $23.95 at many nurseries, puts $1.35 each back into the University system.

“In the horticulture department, it’s one of the most renowned varieties of plants that we’ve produced,” Luby said.

Based on production rates, Luby said, the cost of Honeycrisps could possibly go down within the next several years.

“Many millions of trees now have been planted over the last four or five years. As those trees get bigger, we’re going to start to see more and more fruit,” Luby said.


TK: The story also talks about other rising stars of the breeding program, including Zestar, Sweet Tango and Snow Sweet. Is it just me, or does it seem UM is kicking WSU's tail when it comes to developing new apple varieties? Correct me if I'm wrong...

The overwhelming supply response of growers to a profitable variety reminds of a conversation I had at the PMA where one apple marketer offered that the only way to maintain profitability of production to enter the realm of so-called "managed" varieties. For apples like the Pink Lady and the honeycrisp, the horse was out before the proverbial barn door was shut; there will be no "managing" of honeycrisp acreage in the U.S., though that may not be the case overseas.

Questions remain about managed varieties. Is the art of 'managing" production merely delaying the inevitable decline in f.o.b. prices? Does this management of acres get in the way of market signals to growers and prevent significant promotion opportunities? Will consumers build any loyalty to a high- priced, limited supply managed variety, or will it always operate on the fringe of the market, an enigma to retailers and a question mark for consumers?

Check out the youtube video below on the U of M breeding program;







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