Working Together for Aronia: Some Ideas for Processing and Marketing. Steven McKay President Micosta Enterprises Hudson, NY

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1 Working Together for Aronia: Some Ideas for Processing and Marketing Steven McKay President Micosta Enterprises Hudson, NY

2 My Experiences in Working With Growers and Industry for Specialty Crop Development * Blueberry Industry * Black Raspberries Iowa pick-your-own grower NY marketing example * Red vs Yellow Raspberries * Ribes and The International Ribes Association Early case studies in Northeast * Gooseberries Oregon vs Northeast * Observations of European Aronia Industry During Almost 20 Years

3 Lessons Learned in Working With Growers and Industry for Specialty Crop Development There are no silver bullets no matter how good a crop seems Marketing and customer recognition of the product is more of a challenge than growing There needs to be a balance between cooperation and competition for sane industry development Both the big investors and smaller investors need to find common ground, especially in marketing

4 Advantages We Have for Industry Development Crop lends itself to local and organic development Sustainable crop for the environment, easy to grow with few inputs and possible to grow on marginal sites (within limits) Health benefits associated with the crop Productive crop, so even if the market price drops, lots of margin for profit

5 Challenges We Have for Industry Development Crop and products are relatively unknown by public There is a lack of infrastructure or organization of existing infrastructure to process and market crop There is a lack of standards for fruit and products (poor quality could ruin industry before it really starts) Can we find the proper balance between competition and cooperation among producers? No marketing order exists to tax growers and provide money for industry development.

6 Possible Areas to Cooperate National marketing cooperative with possible processing function for expensive processes. Local/regional processing and marketing efforts. Solving production problems (pests, harvest/postharvest) Developing quality standards. Developing a set of standard products with the potential for regional, national, or international marketing based on mainstream customer acceptance

7 Possible Areas to Compete Develop your own efficiencies in production to increase profit margins Develop your own local unique products that match local demand (with potential to expand to markets outside local) Expand local markets for your own product and size production relative to demand

8 What is Today s Customer Looking For? Great flavor, good texture and mouth feel Low sugar, low fat, high fiber Low glycemic/diabetic-friendly Health benefits Low calorie, lower carbohydrate, but natural Short, simple ingredient lists No artificial preservatives

9 What Aronia Products Fit-the bill? Herbal tea (infusion) blends that taste good, even without sweeteners. Frozen aronia berries or aronia pulp for smoothees Aronia concentrate or single strength juice Fruit-sweetened aronia syrup Fruit-sweetened juice Aronia sorbetto Aronia raisins Wet infused aronia fruit for cooking Aronia raisins in dark chocolate Aronia-flavored dairy products

10 So How Do We Get These Products Manufactured and To Market? The good news is that most of the mentioned products can be made and marketed on a small scale locally without huge investment. This is within reach of small entrepreneurs. Also a cooperative effort (a coop)can help to take care of the processing and marketing that requires a more significant investment (concentrate and freeze-dried product). To get started, we first need to know what steps are involved in the processing, and how to achieve them so we have a product to market.

11 Step 1: What Are Raw and Primary Processed Products NEED A SOURCE OF CLEAN, READY-TO-USE RAW MATERIAL FOR MAKING RETAIL PRODUCTS Raw, cleaned (or unsorted with stems/leaves for pulping) Primary Processing (possibly more salable) products that can be further worked to make retail products: Cleaned unfrozen in boxes or bins Cleaned frozen in boxes or bins Pulp shelf stable or frozen Single strength juice frozen or shelf stable Concentrate Freeze-dried concentrate, pulp, berries Infused berries dry or wet/frozen Syrup

12 Where Can Processing be Done? Small-scale, on-farm primary processing making puree and infused berries with syrup. The option then exists for making desired retail products Plants specializing in selected mainstream products in large scale (co-packing or own facility) would do traditional juicing, concentration, and freeze drying. (Obviously puree, and infusion possible) A coop that does primary processing and possibly selected mainstream retail products

13 Processing Solution Suitable for Smaller-scale Producers Develop a network of small, local processing facilities instead of one big facility to promote industry stability and efficiency. Keep crop and product production as local as possible. Improves job creation and stimulates local economy Produce raw product and local value-added products to develop local/regional recognition (eg fermented products, baked products, dairy products, sauces and preserves, gift baskets, etc.) Produce selected standard products that can be marketed collectively by the marketing coop on a national basis Work both to develop the local/regional market while working to develop national crop and product recognition/distribution

14 Small-Scale Local/Regional Processing Affordable new pulping machine in development Pulping, infusion, and drying processes are easily achievable at a local/regional level Once one has basic primary processed product, it is easier to convert them into retail products under one s label and be creatively locally Standard products marketed by the coop could become the breadand-butter income as other local products are developed What cost would be involved in setting up a small-scale plant? Steam kettle (2,000), 3 compartment sink, handwash sink and stainless steel table (1,000), cleanable room. For syrup and dried infused fruit add convection oven (2,000) For pulping, add pulper (8,000)

15 Coop Options Marketing Coop sells raw product and primary processed products from inventory on farms. Marketing Coop takes possession of products and warehouses and sells. (Warehouse space in freezers and other areas can be rented.) Marketing and Processing Coop that does processing to make primary and/or retail products

16 Our Ideal Aronia Coop The coop would develop a set of standard, mainstream products that could be marketed on a national (possibly even international) basis Maximum effort would be invested in gaining recognition for the crop nationally, and beginning to open markets for a few selected products such as raisins, juice, and wet infused fruit. The coop might do some simple processing such as de-stemming, and freezing. Concentrating and freeze drying could be contracted out for co-packing to avoid huge expenditures on equipment. Inventory would be kept of the standard mainstream retail products so they could be drop-shipped as efficiently as possible from local/regional production sites. The above plan would avoid having to take possession of product. The coop could monitor quality and continue to develop/improve mainstream products.

17 Following Session What would a local/regional processing plant need in terms of site, building, equipment, and investment? What does the equipment look like in a local/regional plant, and is it easy to operate? What are the basics involved in food processing and preservation and what machines can help? What retail products can be made from each form of primary processed product and what packaging options exist? What is a scheduled process, and how difficult are regulations for food processing?

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19 Recipes/ Mainstream Products Low to no sugar, low fat, containing fiber palatable to mainstream, but with real aronia flavor (reduced bitterness) Juice Syrup Infused Fruit Sorbetto and Ice Cream Yogurt Sauces, Spreads, Dressings Herbal Teas Raw Seed Bars

20 Service/Packages I Could Offer Classroom instruction: Food safety and record keeping requirements and systems Equipment acquisition, placement, installation Basic food processing principles Recipes and scheduled processes Lab: Practical experience with making recipes.food safe practices

21 Service/Packages I Could Offer Instruction at conference Special processing meeting with classroom and lab work On-site consulting to set up kitchens