2300 River Plaza Drive / Suite 110 / Sacramento, CA 95833Vol. 43, No. 2

An exclusive membership newsletter published by California Canning Peach Association the cooperative bargaining association in the canning cling peach industry.

2300 River Plaza Drive / Suite 110 / Sacramento, CA 95833Vol. 43, No. 2

Sacramento: 916/925-9131 – Yuba City: 530/673-8526 – Modesto: 209/537-0715February 20, 2013

Website: E-mail:

HIGHLIGHTS OF THE 91st ANNUAL MEETING

The Association’s 91st Annual Meeting was held on Wednesday, February 13 at the Sacramento Hilton Hotel. Our Keynote Speaker was Dave West, President & CEO of Del Monte Foods. He discussed the ongoing campaign to revitalize the Del Monte brand with significant investments in consumer research, marketing, and packaging. He added that changing consumer misperceptions about the quality of canned fruits and vegetables was essential to driving additional sales growth in these categories. He further reviewed Del Monte’s “Bursting with Life” advertising campaign consisting of national TV, print, and digital advertising along with public relations and engagement with social media platforms. He noted that this brand revitalization effort would also include the largest package redesign in Del Monte’s history. Chairman of the Board Gary Darpinian reflected on his eight years of service as Board Chairman and expressed his confidence that the Association would continue to do what it does best – represent the interests of its growers. He added that one of the accomplishments that he was proudest of during his tenure was the cooperative relationship that the Association has built with all our processor customers. In his remarks, President Hudgins noted that there was now a bit more optimism for peach growers in 2013 following the establishment of an early price agreement of $350/ton. He added that the industry had been approaching a tipping point following the 2012 season as growers clearly needed higher prices for the peach industry to remain viable in California. He noted that the emerging middle class of consumers globally could represent additional international sales opportunities for the U.S. canned peach industry adding that the Association stood ready to work with processors to reach new consumers. He further noted that mechanization research efforts in order to reduce our reliance on hand labor for pruning, fruit thinning, and harvesting was another critical part of the Association’s ongoing work to improve the peach industry outlook. He closed by reviewing the importance of maintaining a balanced supply/demand position in the industry, noting that while some new plantings were necessary to replace aging orchards, we must avoid a return to over-production at all costs and called on peach growers to only plant new orchards if they have a processor contract in hand. The Peach Family dinner following the meeting included recognition of outgoing Board Chairman Gary Darpinian for his outstanding leadership.

SUNNY DALE ELECTED AS NEW CCPA BOARD CHAIRMAN

The Association’s Board of Directors has elected their new Board officers for 2013. Sunny Dale was named as the Association’s new Board Chairman following Gary Darpinian’s decision to step down after serving 8 years as Chairman. Sunny is from Yuba City and has served on the Board since 1999. Other Board officers elected were Vice Chairman, Eric Spycher from Ballico, Secretary, Leonard Perez from Kingsburg, and Treasurer, Jasbir Bains from Yuba City.

RECENT RAINFALL TOTALS SLIP WELL BELOW NORMAL

After a strong beginning with heavy rainfall in November and December, we have seen a significant drop off in Northern California rainfall for the first six weeks of 2013. Rainfall during the January 1 – February 15 period amounts to less than 35% of normal in all four Central Valley locations shown below.

CHILLING HOURS UPDATE

Chilling hours accumulated as of February 18 are below year-ago chilling hours for Modesto and Parlier, but the totals for all three reporting stations are very close to the previous 5-year average chilling hours. With just 10 days to go for the Nov. 1-Feb. 28 reporting period, we have already logged more than a sufficient number of chilling hours this winter.

CALIFORNIA CANNING PEACH ASSOCIATION

FIRST CLASS MAIL

U.S. Postage Paid

Permit No. 2915

Sacramento, CA

2300 River Plaza Drive / Suite 110

Sacramento, CA 95833

ADDRESS SERVICE REQUESTED

CURRENT CROP CONDITIONS

Pruning and brush shredding is now nearly complete. A number of peach growers have reported that the supply of available labor has been unusually tight for pruning this winter. All dormant sprays are now finished, some growers are considering irrigating their orchards due to dry conditions over the last six weeks. It appears that the peach bloom may be delayed slightly this year, last year’s statewide full bloom date was March 8.

DEL MONTE’S KINGSBURG PLANT SOLD TO CHURCH

According to a recent report in the Hanford Sentinel newspaper, Del Monte’s Kingsburg plant property (consisting of approximately 15 acres on Marion Street) has been sold for an undisclosed amount to the Grace Church of the Valley of Kingsburg. The location will be the future home of church buildings and activities. The church has been holding services temporarily at Kingsburg High School. The deal did not include Del Monte’s separate Kingsburg warehouse facility. It is expected that the warehouse will also be sold in the coming months.

DECEMBER IMPORTS UP 39%, EXPORTS DOWN 32%

Canned peach imports for December totaled 413,017 cases, up 39% from last December’s import volume of 296,411 cases. Year-to-date imports now total 2,141,498 cases, up 24% from year-ago levels but nearly unchanged from 2010’s import volume. China accounts for over 70% of total U.S. canned peach imports. Canned peach exports for December totaled 74,849 cases, down 32% from last December’s export shipments of 109,907 cases. YTD export sales now total 706,604 cases, down 17% from year-ago levels but still 16% above 2010’s export volume. YTD selling prices have increased nearly 10% vs. year-ago levels reflecting a much stronger world market this year for canned peaches.

OF INTEREST

• Dole officials report that they have received approval from China’s government to proceed with the sale of their worldwide packaged foods operation and their Asia fresh fruit business to the Japanese trading house Itochu Corporation. The deal is now expected to close within the next 30 days.

• The next Peach Advisory Board meeting will take place on Friday, March 8 at the California Farm Bureau building in Sacramento.

• YTD peach pullouts following the 2012 harvest now total 2,368 acres.

• A Washington state contestant has been named the winner of Del Monte’s “Add Some Garden” contest. The winning recipe involved adding Del Monte canned peaches to make a Peachy Keen Ceviche. The contest winner will receive a culinary tour valued at $10,000 while the other four contest finalists will each receive $500 gift cards.