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Cranberry Oversupply Problem Will See Market Reaction

pixabay.com

Eat more cranberries....that's the hope of cranberry producers as they deal with a large oversupply of the fruit. Wisconsin produces a majority of the nation's cranberries with many producers in the Northwoods.

The National Agricultural Statistics Service reports the state is expected to continue to lead the nation in cranberry production this fall, estimating a harvest of 5.6 million barrels of fruit.

Wisconsin State Cranberry Growers Association Executive Director Tom Lochner says with the current oversupply, producers are losing money given the current price. He says the feds are looking at options...

"....what the committee is recommending is what is known as a 'handler withholding' Under that order, growers would deliver their crops to their handler and the handler is required to withhold 15 percent of it from the market. That goes into a restricted fruit pool and they can dispose of it. In 2018 growers will only be allowed to deliver about 75 percent of a normal crop....."

Lochner says those actions will cut supply, and he says there will be increased marketing nationally and internationally to get consumers to use more cranberries. Lochner says this is only the third or fourth time in 50 years that a federal marketing order has been used to control supply....

"....in the last 10 years we've seen sales increase from 2006 to 2016. In 2016 we sold a million and half more barrels of fruit. At the same time, we produced 3 million more(over those 10 years). Our ability to grow fruit has exceeded our ability to sell it...."

Wisconsin will begin harvesting fruit in late September and end in October.

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