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The Pressroom

West ripe for New York apples?

Growing demand for Empires, inexpensive rail may open a new market

Eric Anderson, Deputy business editor -- Times Union -- May 9, 2008

CASTLETON -- When produce trains began operating between the West Coast and Rotterdam 18 months ago, they brought boxcar loads of Washington state apples to the Capital Region.
Now, some New York apples could be heading in the other direction.

Several factors are making the market more attractive. A frost has caused minor damage to Washington's apple crop, and that could leave some processors scrambling to get enough product.

Also, demand on the West Coast has been growing for Empire apples, which aren't grown in Washington state, giving New York farmers -- who do grow Empires -- a chance to sell out west.

Jim Allen, president of the New York Apple Association, said McDonald's Corp. is among the businesses driving demand for Empires with its Apple Dippers product.

Finally, demand overall is climbing, and the availability of inexpensive rail transport takes some of the challenge out of shipping.

While New York state is the nation's second largest apple producer -- it harvested about 30 million bushels last year -- Washington is by far the largest. It produced 98 million bushels last year, and was counting on a crop of 115 million bushels this year before the frost.

"I doubt that New York will sell apples to Washington," said Paul Carlson, president of the Washington Apple Commission. "We had some frost damage but it is not significant."

But the New York association's Allen said at least two processing plants in Washington had to shut down last year because they didn't have enough apples to turn into applesauce, cider and juice.

"If they come back with the same crop this year, they'll have the same problem," he said. "We have an industry dedicated to growing for the processing business."

Paul Esposito, vice president for sales and logistics at Railex, the company operating the produce trains, said they are available to move the apples west.

"If the shippers are willing, I can get the product out," he said Thursday.

Of course, New York first has to produce the apples.

Ed Miller, who with his wife Sue Goold Miller operates Goold Orchards in Castleton, said that while Washington has had frost damage, so have growers in New York state.

Frost killed some of the early blossoms, and it's still early enough in the season for more frosts. And hailstorms are a risk throughout the summer, he said.

So it's not clear how strong this year's local apple harvest might be.

"Is there a possibility of shipping fruit out there? Probably," he said.

Allen said the strength of the crop doesn't become clear until June, "when you can see the green apples on the tree."

And while he said the number of trees in New York state is at an all-time high, any apples shipped west would be just a drop in the bucket.

"We don't send a lot of apples to the West Coast," he said. "There are more Washington state apples in New York City than there are New York apples." Eric Anderson can be reached at 454-5323 or by e-mail at eanderson@timesunion.com.

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