It’s apple shopping time at the U.S. Department of Agriculture.
Agriculture Secretary Tom Vilsack, in Kansas City, Mo., on Veterans Day, said the agency plans to soon purchase $18.6 million in apples and apple products.
The apple industry has been urging the USDA to make apple purchases a priority for the past year, said Nancy Foster, president of the U.S. Apple Association, Vienna, Va.
“We are extremely pleased and we think that given market conditions of a very bountiful crop, this will enable consumers to enjoy apples and apple products and will also help the industry with increased demand at a time when we have such an abundant supply,” Foster said.
Vilsack and the USDA did not indicate how the $18.6 million purchase would be divided between processed and fresh apples in the Nov. 11 announcement, but Foster said the apple industry has been lobbying for purchases from both sectors.
In fiscal year 2009 — Oct. 1, 2008 to Sept. 30 — the USDA bought about $68 million worth of fresh and processed apples, up sharply from $53.5 million in fiscal year 2008 and $37.7 million in fiscal year 2007. In fiscal year 2009, only about $5 million of the $68 million went to whole fresh apple or fresh-cut apples. The balance mostly went to applesauce ($34 million) and apple juice ($15 million) purchases.
Through Oct. 1-26, the USDA reported purchasing $9.2 million of apples and apple products, with only about $335,000 of that amount represented by fresh apples.
Total industry-wide fresh apple volume on hand was less than last year but still ample, industry statistics show.
U.S. fresh market apple holdings of 108.3 million bushels on Nov. 1 were down 7% from last year but 3% more than the five-year average, according to the apple association. Meanwhile, processed apple holdings were off 15% compared with the past year and off 26% from the five-year average.
Fresh apple prices were trading below year-ago levels. Size 72s of Washington Extra Fancy red delicious at $16 per carton in early November, down about $2 per carton compared with the same time a year ago. Foster said future apple purchases may be needed.
“If warranted, we will approach the department again this year, depending on how the market goes,” Foster said.
In his appearance at the National Association of Farm Broadcasters convention in Kansas City, Vilsack announced the agency’s intention to purchase $82.6 million in pork, cherry, plum and apple products for federal food nutrition assistance programs.
“Today’s actions will help stabilize prices and markets, stimulate the economy, and provide high-quality food to Americans in need of USDA’s nutrition assistance programs,” Vilsack said in a news release.
The USDA intends to purchase $50 million in pork, $12 million in tart cherries, $1.8 million in dried plums and $18.6 million in apples and apple products.
The purchases support the school lunch and breakfast programs, the summer foodservice program, the Food Distribution Program on Indian Reservations, the Commodity Supplemental Food Program and The Emergency Food Assistance Program. In addition, the agency makes emergency food purchases for distribution to victims of natural disasters.