On Aug. 13, the U.S. Department of Agriculture announced a timely relief effort of up to $20 million for Northwest Bartlett pear growers, who entered harvest facing a challenging market after the industry’s largest canner, Del Monte Pacific, declared bankruptcy earlier this month.
“This is a direct response to requests from the industry to alleviate market challenges in the wake of Del Monte’s cancellation of contracts with growers,” said Kate Tynan, vice president of the Northwest Horticultural Council. “We want to commend the USDA for acting so quickly on this.”
Specifically, the USDA announced a pre-solicitation for a Section 32 purchase, which allows the government to purchase produce for food banks and school nutrition programs when producers face oversupply. This Bartlett buy will include both canned pears and fresh Bartletts of the size and grade usually purchased by the processing market, Tynan said.
Demand for canned pears has been on the decline, but Del Monte’s May closure of its Yakima, Washington, processing plant and subsequent bankruptcy filing have left many growers in the lurch, according to a letter from the Washington-Oregon Canning Pear Association to the USDA Agricultural Marketing Service asking for assistance.
While Del Monte initially said it would receive 20,000 tons of pears to process in its California cannery, the company then told growers in late July that it would only take 30 percent of that contracted fruit.
“The impact of canceled pear cannery contracts on all Bartlett growers in the region will be a tremendous blow to the entire industry,” Andrew Sundquist, chairman of the association, wrote to the USDA.
The Pear Bureau Northwest also advocated for the relief effort, citing concerns that surplus cannery pears — typically a smaller size — could flood the fresh market and drive down prices for all Bartlett pears.
The Section 32 buy should provide some meaningful market stability, Tynan said, but the actual purchases of fresh and canned Bartlett pears will be dependent on orders from food banks.
Earlier this month, the USDA announced it would purchase up to $35 million worth of fresh apples for food banks as well. The U.S. Apple Association applauded that decision.
“USApple greatly appreciates this USDA action, especially when market conditions are so adverse toward growers,” said Jim Bair, USApple president and CEO, in a statement. “USDA is always willing for USApple to help them better understand those conditions. This is a win-win for growers and hungry Americans and helps USDA be efficient with taxpayer dollars.” •
