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Made in Washington: Cranberry industry making a comeback |
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Written On: November/December 2006 |
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Written By: by Daniel Brunell |
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Washington produces an astonishing assortment of goods. One of the most surprising is the little berry everyone associates with New England bogs, Thanksgiving, and an irresistible tangy flavor.
Cranberries are a small but interesting part of the state’s agricultural portfolio. In 2004, the state produced 185,000 barrels of cranberries. Washington’s crop represents about 3 percent of the national cranberry output, making it the fifth largest grower in the nation.
Washington has about 125 cranberry growers on more than 1,700 acres of land, mostly located along the Pacific lowlands from Grays Harbor to Long Beach. Grays Harbor County has 80 cranberry growers, which are concentrated in the Grayland area with about 900 acres. Grays Harbor has an additional 100 acres in the North Beach area near Ocean Shores. Pacific County has 600 acres in production near the Long Beach area, while Whatcom County has about 100 acres of cranberries near the town of Lynden.
Most of Washington’s growers are contracted with Ocean Spray Cranberries Inc., a national cooperative of cranberry producers. Ocean Spray was founded 76 years ago and has had a presence in Washington since the 1940s. Currently, Ocean Spray is owned by more than 650 cranberry growers in Massachusetts, Wisconsin, New Jersey, Oregon, Washington, British Columbia and other parts of Canada, as well as more than 100 Florida grapefruit growers. Last year, Ocean Spray reported gross sales of about $1.4 billion.
Most cranberry farms are family affairs that go back generations. In the Grayland area, many cranberry bogs were started by Finnish immigrants in the 1870s. Despite the advent of mechanical pickers and other technologies, the industry remains rather low-tech. Families with a small staff of employees maintain and harvest the crop.
One of these is the Erickson farm near Grayland. Merri and Bob Erickson moved back to the area in 1975 to work the fields that Bob’s family grew up on.
"This year’s crop is smaller than last year’s," said Erickson as he looked out over his acreage. "A cold spring, along with a hail storm last September, really nailed this crop."
The weather hasn’t been the only thing that’s been rough on cranberry growers. In 1999, the price of cranberries dropped precipitously from 60 cents to 10 cents a pound. In the 1980s and early 1990s, consumer demand for cranberry products surged past available supply, driving up the price of cranberries. Growers responded by increasing acreage and planting higher-yielding varieties. Growers were making long-term investment decisions based on short-term prices. The industry-wide expansion was followed by an unfortunate stalling of demand growth, causing a dramatic drop in prices.
Since then, prices have made a comeback. This year, the average price for cranberries has steadily increased to 40 cents a pound. The market stabilization, along with a new aggressive marketing approach on the part of Ocean Spray, has assisted in the turnaround. Over the last several years, there has been a dramatic change in the way many consumers view the tangy fruit that was once viewed as a strictly seasonal novelty.
"There has been a concerted effort by Ocean Spray and their growers to make cranberries a year-round product instead of it just being a Thanksgiving and Christmas delight," said Merri Erickson. In addition to growing cranberries, Merri runs the Washington Cranberry Alliance, an organization that represents the state’s cranberry growers. "So far, I think we have been successful."
Much of the campaign to make cranberries more popular has focused on diversifying the ways cranberries are marketed. For example, cranberry juice blends like Ocean Spray’s Cran-Apple®, Cran-Grape®, and Cran-Raspberry® flavors have become best sellers. Another Ocean Spray product, Craisins®, consists of sweetened, dried cranberries. These have become wildly popular, taking the place of raisins in many trail mixes and snack foods.
Ocean Spray has also adapted to the rise of more health-conscious consumers. Omega-3 essential fatty acids, vitamin E, and antioxidants are found in relatively high concentrations in cranberries. By tailoring their product to these new consumers, the cranberry industry is revamping their whole image. Two examples of this transformation have been seen in the last 18 months.
In July 2005, Ocean Spray and Pepsico Inc. announced a long-term strategic alliance in which the soft drink maker will market, bottle and distribute single-serving cranberry juice products in the United States and Canada under the Ocean Spray name. The agreement also includes opportunities for the future development of new products.
"This agreement will greatly increase the ways we get our products out to consumers," said Bob Radford, fresh fruit manager for Ocean Spray. "Especially getting our products into convenience stores, vending machines, and other markets around the nation."
The second example has a direct regional impact. Ocean Spray has begun a $33 million expansion at its Aberdeen plant that will add a new Craisin line capable of producing more than 15 million pounds a year. This will make Aberdeen the main producer of Craisins on the West Coast, boosting production from 400,000 barrels of cranberries to about 600,000 barrels. The Aberdeen plant will process more than 50 percent of the total West Coast crop. The addition will add 50 full-time, family-wage jobs to the plant’s current complement of about 70 employees. The project is slated for completion by April 2007.
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