A Convergence of Market Forces

As for California Prunes, we were fortunate to have had such a strong foundation in place as a food that consumers recognized and trusted. When the year ended, total shipments of California Prunes had increased by 14% over the previous year, and the most in the past four years. That trend continues today. We now look to build on this momentum, listening and learning from our trade partners and consumers who have turned to California Prunes during this period, with a goal of earning their continued trust and loyalty.
 

In convergence with this momentous demand are the weather challenges that rocked producers in South America and France earlier this year leading to significantly reduced crops and tighter inventories for at least the coming year. For those who make their living in agriculture, these challenges are all too familiar, and even among competitors, empathy and understanding abound. The shift in global positioning can certainly be seen as historic for the prune industry, and a real hardship for growers and handlers, who are left with limited-or-no inventory as they prepare for the next year. In what would otherwise be a robust market, the global industry has recognized the need for supply between now and the next Southern Hemisphere harvest.

For those who grow and process California Prunes, the increased demand of the past year and a smaller-than-average crop in 2020, helped stabilize inventory, something we manage carefully to accommodate our customers year-round. Premium producers like France and California intentionally carry over inventory as a protection plan and will likely have the capacity to provide the fruit for the gap left by the Southern Hemisphere.

The 2021 California crop is estimating an average-to-slightly-above average in volume and the quality and range of premium sizes are consistent with what our customers have come to expect. While global inventories will be tight, California is in a healthy position.

In May of this year, California hosted colleagues from the global prune industry for the 19th annual International Prune Association (IPA) Congress, held virtually for the first-time in history. Having traditionally attended Congresses in prune regions like South America, Europe, Australia and South Africa, the virtual IPA was a reminder of the value many get from camaraderie among associates, enthusiasm for our business, and local culture which can be aptly shared in-person. Nevertheless, holding the virtual event came at an opportune time and elevated the value of the IPA by bringing clarity to our shared challenges and opportunities.

While the convergence of limited global supply and strong demand commanded much of the attention during the IPA program, there was recognition that weather-related challenges –drought and increasing temperature volatility, in particular– present difficulties for growers in both hemispheres. Practices that offset rising labor costs, limited available water, land, and mounting regulatory costs are more important than ever before. Continued investment in irrigation efficiency, resilient rootstocks, fruit size management and, mechanical innovations in pruning are all integral to our success going forward. These challenges drive California growers and handlers to continue making substantial annual investments in proprietary research, but also partner with leading universities and institutions to provide the industry with tools that help us grow consistently high-quality prunes, profitably and sustainably.

Adding to these challenges, traditional food distribution systems are being tested like never before. Macro issues, including trade policies, tariffs, world politics, exchange rates, and the value of the U.S. dollar continue to be in a state of constant change. These factors –largely beyond our control– do not define our industry.

The diverse makeup and multigenerational families of California Prune growers are the core of the industry bringing craftsmanship to the orchards. Over 100 years of expertise has gone into perfecting the growing and harvesting techniques of California Prunes including our intricate climate-controlled tunnel-drying process to produce that legendary sweetness. Of course, we back all of this up with incomparable industry collaboration to drive market support through promotion and nutrition research.

I could go on, but I think our current Chairman of the California Prune Board, George Sousa, Jr., sums it up best by saying that if you were to list all of the attributes of California Prunes, but didn’t tell people what the product is, everyone would say: “I want to eat that!” We are committed to believing in our product, our industry, and all that we are doing to advance its success for years to come.

As our brand proclaims: California for Prunes. Prunes for Life.