Saskatchewan Fruit Growers Association
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1 Saskatchewan Fruit Growers Association Strategic Plan Prepared by: SFGA Executive October, 2013
2 Table of Contents Introduction & Background pages 2-5 The Strategic Plan 1.1 Strategic Initiatives pages Industry Overview pages SWOT Analysis pages Participants page 11 SFGA Strategic Plan page 1
3 Introduction: The Saskatchewan Fruit Growers Association (SFGA) was established in 1988 to represent the interests of commercial fruit growers in Saskatchewan. Over the past 25 years the industry has grown from a stage characterized by small local markets absorbing strawberry, raspberry, and native wild-fruit, harvesting with little or no commercial processing activity; to a stage in which export markets are being supplied, processors have developed a variety of processed products that are sold through large-scale retail grocers, and new domesticated varieties of fruit and nut have been released from the University of Saskatchewan Fruit Research Program. Some human clinical trials have also been conducted to investigate the relationship between consumption of Saskatchewan grown fruit, and health benefits that could be used to better market them. At the inception of the SFGA there were a limited number of fruit species capable of being used for commercial production in cold climates (e.g. Saskatoons, Strawberries, and Raspberries), but new species and cultivars recently released by the University of Saskatchewan s fruit breeding program have broadened the options available to producers (e.g. dwarf sour cherries, haskap, apples, hazelnut, grapes, et cetera). In response to specific fruit production needs, several species-specific corporate entities were created including: Haskap Canada, Canadian Cherry Producers Inc. (CCPI), Prairie Fruit Processor s Ltd., and Prairie Apple Producers Incorporated (PAPI). The Canadian Prairie Fruit Federation has also been active with membership from Manitoba, Saskatchewan, and Alberta to serve some of the research and marketing needs generic to all three provinces. Some industry advancements include: two new risk management tools... the Multi-Peril Fruit Tree Insurance Program offered by Saskatchewan Crop Insurance Corporation, as well as the Wildlife Damage Compensation Program; better agronomic production practices being developed with support from growers, Agricultural Demonstration Of Practices and Technology funded trials, and CAAP projects (like Dr. Cory Sheffield s investigation of Fruit Crop Pollination and Wild Bee survey); and new pest management tools registered through PMRA s Minor Use Program. Unfortunately: storage, handling, and transport infrastructure still needs development; industry statistical data remains poor; and product supply has varied significantly from year to year. The SFGA has supported research focused on: improved production practices that will allow growers to provide consumers with a consistent supply of top-quality fruit (including improved disease/pest control, optimized pruning techniques, et cetera); the adoption of quality assurance protocols that will meet international food safety standards; creation of higher value production and processing industries through innovation and research; prairie-wide branding efforts; fruit breeding efforts to improve quality and diversity of fruit (like haskap breeding, grape and apple rootstock breeding, et cetera); health effects that result from consumption of our fruit. The SFGA also worked with the Government of Saskatchewan to develop crop insurance tools for our growers; and worked with the province and the Canadian Horticulture Council (CHC) for registration of appropriate pest control products. SFGA Strategic Plan page 2
4 Background: The Fruit Industry in Saskatchewan According to Statistics Canada the total Saskatchewan acreage planted for small fruit production in 1986 was 296 acres. At that time; strawberries held the dominant position with 208 acres, followed by 52 acres of saskatoons, and 36 acres of raspberries. Saskatoon berries and new fruit crops like haskap (edible honeysuckle), dwarf sour cherry, and apples have shown relatively steady growth (since 1986 for Saskatoons... and early 2000 s for other fruit crops (Please see Table A). In the early 90 s the search for new crops to increase farm income was underway. The advantage Saskatoon berries had (with respect to early development) was that they were native to the western provinces and hardy, the downside was that diseases and pests were endemic. Early in 1994, the Saskatchewan Indian Agriculture Program Inc. identified the need to complete an assessment of the North American commercial market opportunities for wild fruit and berry crops grown in Saskatchewan. At that time, five major berries were considered for large commercial opportunity: chokecherry, saskatoon berry, wild blueberry, highbush cranberry and lingonberry. The communication and promotion of the results of the Specialty Berry Market Assessment Study fueled the early growth and interest in saskatoon berries as a diversified crop. Table A Fruit Production in Saskatchewan Fruit Production Planted Acres Fruit Strawberry Raspberry Saskatoon Chokecherry N/A 55* Sea buckthorn N/A 100* HB Cranberry * 8* 8 8 Blueberry Black Currant * Apples, Cherries, Haskap, etcetera Total Berry Production ,094 1, ** 2277** Source: Saskatchewan Ministry of Agriculture * estimated acreage, since berries included with other fruit ** acreage estimates based on personal contacts and SFGA Membership Industry responded to the market assessment and between 1996 and 2001 the number of acres dedicated to saskatoons more than doubled. Projections indicate saskatoon acreage may continue to increase, but that other new fruit crop acreage and production may outstrip saskatoon berry acreage over time. SFGA Strategic Plan page 3
5 With increased availability of fruit, several processing companies have created processed product lines that can be purchased in retail outlets throughout western Canada. In 1998; Saskatchewan Agriculture, Food and Rural Revitalization, established a fruit specialist, which enabled increased and specific focus in the industry, and by 2004 there were 525,000 pounds of Saskatoons processed in the province. Frozen berries were introduced in retail outlets of Federated Co-operatives throughout western Canada in Since 2005; other products have been introduced into the retail marketplace including: juice blends, sauces, jellies, jams, honey/fruit mixtures, and varieties of frozen and fresh fruit. There have also been ancillary support companies that have developed with the industry, such as Prairie Plant Systems (who use micro-propagation to produce large quantities of saskatoons, cherries, Haskap et cetera). Their plantlets can be ready for transplant in just over a year. Interest has increased regarding manufacturing small orchard harvesting equipment and other machinery, as well as the Mexican/Caribbean Seasonal Agricultural Worker Program (SAWP) and the Low Skill Agricultural Worker Program that have been available so that producers can meet the significant labour needs to run, or expand orchards. In 1999 Dr. Bob Bors joined the University of Saskatchewan and revitalized the Fruit Breeding & Research Program. This program is the only fruit-breeding program at a public institution on the prairies. It is recognized in North America and around the world for the work done on Dwarf Sour Cherry, Haskap, cold-climate Apple and Grape breeding, as well as other cold-hardy fruit. The extension and research activities under the direction of Bob Bors, and Rick Sawatzky have significantly contributed to the growth of new fruit crops in Saskatchewan. In 2006 the University of Saskatchewan released six varieties of Dwarf Sour Cherry. Frozen pitted packaged cherries are now available in the Saskatoon retail marketplace, along with Juices, Ice cream products, wines, liqueurs, and dried (in some cases sweetened) cherries. Interest has come from Japanese companies to import Haskap fruit, but more potential has been targeted within Canada. There are now commercial haskap growers across the entire country, but the overwhelming majority of the acres remain centered in Saskatchewan. Haskap growers have developed processed products like jams, jellies, liqueurs, and are targeting the smoothie, juice, and health markets. New varieties of haskap have been released by the U of SK including: Tundra, Borealis, Aurora, Honeybee, Indigo Gem, Indigo Treat, and Indigo Yum. Apple acreage has increased in the past 10 years. Rick Sawatzky worked with Craig and Yvette Hamilton to establish a 40 acre apple orchard near Radisson Saskatchewan. The Hamilton s success sparked interest by other growers and the number of acres began to increase significantly. An apple committee was established to address the marketing and development needs of apple producers, which eventually formed into the Prairie Apple Producers Inc. (PAPI). In 1999 the apple variety SK Prairie Sun was released from the U of SK breeding program, then in 2005 Prairie Sensation, followed by Autumn Delight, Misty Rose, Festive Treat, as well as unofficial PAPI named varieties Celeste, Red Mike, Anna Gold, Patience, Granny Annie, Petrofka Mac, Prairie Rose, and Sweet Saffron. There have also been SFGA Strategic Plan page 4
6 releases of other fruit and nuts (Plums, Pears, Grapes, Hazelnut) through the U of SK Cooperative Testing Program. Dr. Bors has also produced several grower manuals to help guide new growers and to provide a reference to people established in the industry. Provincial records indicate that $3.2 million dollars have been spent on 61 fruit research and development projects since The SFGA has evolved with the times and attempts to meet the particular needs of its membership. Recent projects have included the launch of a new website, and exploration of social media marketing tools. The impetus to create a revised strategic plan for resulted from the SFGA completing its previous strategic plan in New industry developments and SFGA budget limitations made it appropriate to reconfigure goals and objectives to better enable the SFGA to meet the needs of its membership. Section 1 The Strategic Plan This strategic plan is designed to ensure that the SFGA remains a viable organization that provides value to its membership, and is crafted to ensure activities conducted by the organization fall within strict budget parameters. Overall objectives: 1) To provide education and unique business support to SFGA Members (50% of yearly budget) 2) To promote public awareness of fruit production in Saskatchewan ; (30% of yearly budget) 3) To support relevant fruit research projects in Saskatchewan (15% of yearly budget) 4) To represent the Saskatchewan Fruit Industry to Government (5% of yearly budget) 1.1 Strategic Objectives: Goal 1: To serve the unique needs of SFGA Members...via: A. Education I. Website: launch new site that will feature better resource libraries, news updates, links to grower site information, et cetera SFGA Strategic Plan page 5
7 II. Workshops: utilize top experts (in some instances via web-conference tools) and offer workshops relating to: agronomics (pruning; grafting; weed, disease, insect, wildlife control; irrigation; fertilization; pollination and bee keeping; post-harvest storage and handling); food safety; et cetera. III. Newsletters: to ensure membership remain up-to-date on issues, to allow the activities of the association to be promoted, and to facilitate member participation in the association IV. Mentor referral: provide open farm day opportunities where new entrants to the industry can be mentored by veteran growers who are willing to provide instruction and allow visitation to their orchard sites on specific dates (arranged by the SFGA) V. Conferences: to bring the membership together, provide speakers regarding a wide range of industry relevant topics, to conduct the Annual General Meeting, provide a venue for members to develop business contacts and camaraderie, and provide a venue for fruit industry suppliers to pitch their new products to SFGA membership clients B. Business Support I. Bulk Purchase Apps: (integrated within the new website) also to include a Merchandizing Manual II. Website: (links to commonly used suppliers); bulk order form features... of items that are commonly needed, et cetera III. Workshops: marketing; processing; finance; labour; leadership; communications (social media); international trade guidelines; quality control; et cetera IV. Branding; merchandizing materials; QR codes; logos; image management; ethics; et cetera Goal 2: Promote Public Awareness of Fruit in Saskatchewan via... A. Education I. Media Releases; to be prepared on a regular basis to ensure news worthy stories provide maximum exposure opportunity for SFGA members; provide SFGA spokesperson to media; sponsor Media Tours of orchards II. Website; e-blasts, and other social media tools III. Trade Show participation; including activities like Open Farm Day, or Food Expos B. Advertising I. Social Media; periodic twitter feeds II. Ads in Tourism Saskatchewan with links to SFGA website III. Printed material available from the new SFGA website (Merchandizing materials for retailers, Upicks, et cetera) SFGA Strategic Plan page 6
8 C. Branding I. Canadian Prairie Fruit Federation (CPFF) Brand (package available to SFGA Members on Website) highlighted at tradeshows, et cetera II. Canada Brand (available to SFGA members), materials, guidelines for use, workshops, et cetera Goal 3: To support fruit research projects in Saskatchewan A. That investigate the health benefits of consuming Saskatchewan fruit B. That relate to Value-added processing C. That relate to plant breeding, agronomy, and new machinery development D. That support plant breeding (at the University of Saskatchewan), development of agronomic knowledge, and development of economically efficient machinery and tools E. That provide statistical knowledge about the fruit industry in the province Goal 4: To Represent the Interests of the Fruit Industry (mainly vis-a-vis Government) by... A. Arrangement of meetings with Senior Ministry of Agriculture Officials (yearly with the Provincial Government, and biennially with the Federal Government) B. Collaborate with external organizations on policy development (like CHC, CPMA, PMRA, SCIC, STEP, et cetera) C. Promote creation of fruit Development Commissions or (through the national Farm Marketing Council) Research, Market Development Promotion Agencies to Government 1.2: Industry Overview The strategic and business plan will provide generic areas of focus that should be maintained to ensure that the fruit industry continues to shift from stages 1 & 2 of commercial development to stages 3 & 4, as outlined in various market reports by Dr. Gary Storey (See below). However; this does not imply that earlier developmental research activities can be abandoned, they are always important in the sustainability of the industry. Stage 1 Stage 2 Stage 3 Stage 4 SFGA Strategic Plan page 7
9 Primary products produced are marketed by individual producers/ processors Industry primarily markets on regional basis No need to penetrate new markets outside immediate market Consumers willing to pay a premium over substitute products Industry primarily made up of small niche markets Government likely to commit resources for research to increase the productivity of the primary product Government might commit resources to help underwrite the operation of a producer or processor association The ability of an industry to handle any unexpected high yield A data collection system is developed to monitor estimate in yields Some entrepreneurs may see further industry expansion not in their interest and take various actions to discourage new entrants Development of Primary processing capacity to handle surplus production Development of new secondary processing capacity Development of collective action in the form of cooperatives or industry councils beyond existing borders Introduction of a check-off system New products are developed New markets are sought out Price premiums earned over substitute products are reduced Efficiency in marketing is achieved Monitor estimated yields and improve data collection system based on results Research Areas Associated with the 4 Stages of Development* Plant Systems Product Market Breeding Propagation Field Management Fertilizing Pruning Disease & Pesticide Controls Information & knowledge Food Safety Post-Harvest Handling Storage Life Primary Processing Fresh or Frozen Secondary Processing Value Added End Uses Juices, concentrates, dried fruit, etc. Product Analysis Products produced domestically no longer command a premium Marketing structure will have become effective and efficient Grower and processors will be viable Expanded production will have occurred Industry itself funds a major share of development Consumers will know and recognize the food products both domestically and internationally Continued research for higher yielding cultivars, new chemicals for overcoming disease & pests Market Analysis Trends Health Related Claims Promotion Functional Foods SFGA Strategic Plan page 8
10 1.3 STRENGTHS, WEAKNESSES, OPPORTUNITIES, THREATS (SWOT) STRENGTHS The industry is growing There is a significant and growing amount of market opportunity Prices have increased with inflation Processing capacity within Saskatchewan using Saskatchewan grown fruit for their value added products has expanded The University of Saskatchewan Fruit Program provides excellent research capacity Functional food and nutraceutical processing capacity is strong There is a proactive vibrant morale within the industry Alberta and Manitoba growers are cooperative and partner with SFGA Successful U-pick infrastructure & grower experiences OPPORTUNITIES More cooperation among growers within the prairie provinces Local markets are growing Nutraceutical & functional food markets are expanding Growing Forward II funding programs are available to SFGA Processing capacity has been expanded To further develop value chain models or production cooperatives Strong points of difference in order to brand Large land base available to expand Further development of novel products More penetration into the domestic market WEAKNESSES Difficulty of coordinating activity over vast distances (from a prairie perspective) Dollars to fund the strategic initiatives are lacking It takes 4 years to get saskatoon berry plants, Apples and Dwarf Sour Cherries into a fruiting stage of development Perception by non-members that there is no reason for them to belong to the SFGA Contribution to GDP is small relative to other agriculture industries Lack of infrastructure and to a limited extent a lack of experience in international food safety standards Lack of fully integrated value chains Lack of targeted marketing strategies Lack of industry appreciation of market segmentation Lack of identification of product competitors and developing strategies in order to gain competitive advantages Lack of implementation plans Limited accuracy of financial projections Lack of infrastructure with respect to evaluation and control of industry development THREATS There is difficulty identifying market potential and therefore marketing may be misplaced Fruit importers want assured supply and quality of fruit that may be difficult to meet Competition from other fruit and fruit production areas Foreign regulations regarding food safety may lead to import bans or detentions Quality of product may not be consistent enough to satisfy consumer preferences Lack of pest/disease tools to mitigate infestations and quality losses may lead to shorting Lack of funding for established research SFGA Strategic Plan page 9
11 is achievable Processing research money is more readily available programs may result in inability to evolve with the marketplace Lack of harmonization of industry standards with respect to food safety and pesticide residues, may lead to greater problems with respect to the international market Lack of knowledge regarding international standards for OFFS standards may limit market penetration SFGA Strategic Plan page 10
12 2. PARTICIPANTS IN THE STRATEGIC PLANNING Wayne Pearson; SFGA President Prairie Sun Orchards Box 387 Vanscoy, SK S0L 3J0 (306) Betty Forbes; SFGA Vice President Northern Vigor Berries Inc Kenderdine Road Saskatoon, SK S7N 4K3 (306) Mel Annand; SFGA Past President Creekside Orchard 208 Main Street P.O. Box 69 Melfort, SK S0E 1A0 (306) Bruce Hill ; SFGA Board Member Hill Berry Acres Box 360 Imperial, SK S0G 2J0 (306) b.hill@sasktel.net Peg Munroe ; SFGA Board Member Box 717 Balgonie, SK S0G 0E0 (306) munroe@sasktel.net Vance Lester ; SFGA Board Member Living Sky Winery Box 32 Perdue, SK S0K 3C vance@livingskywinery.com Dr. Bob Bors University of Saskatchewan Dept. of Plant Sciences Saskatoon, Sask. S7N 5A8 Work Phone: Fax: bob.bors@sask.usask.ca Forrest Scharf Saskatchewan Ministry of Agriculture 3085 Albert St., Regina, SK. S4S 0B1 Phone: Fax: forrest.scharf@gov.sk.ca Catherine Duczek Marketing & Trade Officer Midwestern Regional Office Market and Industry Services Branch Agriculture and Agri-Food Canada th Avenue Regina, (Saskatchewan) S4P 4K7 catherine.duczek@agr.gc.ca Telephone Téléphone: Cellular Cellulaire: Facsimile Télécopieur: Ken Neuman ; SFGA Advisor Manager, SaskMade Marketplace th St E., Saskatoon SK S7H 0T Patty Stewart; SFGA Administrator Box 1107, Yorkton, SK S3N 2X3 (306) kp.stewart@yourlink.ca SFGA Strategic Plan page 11
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