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Kevin Stennes, fourth generation farmer and organic sales manager at Chelan Fresh, sat down with OPN Connect to discuss the history of Chelan Fresh and the growth of organics.
OPN Connect: What’s the history of organic at Chelan Fresh and how has your organic program grown as demand continues to increase?
KS: “My family started transitioning pear orchards to organic production in the late 1990s and then we transitioned Apples, Asian Pears and Pluots in the early 2000’s. During this time we developed the Cascade Crest Organics brand and in 2004 I began doing direct sales into the Pacific Northwest
As demand increased Chelan Fresh was getting pressure from retailers to develop an organic program. It was a natural fit for Chelan Fresh to bring on the Cascade Crest Organics brand that already was being recognized in the industry for quality organic produce. They brought me on in 2013 to manage the organic sales program and continue to grow it.
The program has grown from about 500,000 cases in 2013 to what we expect to be almost 2,000,000 cases in the 2019 crop. We have added a few growers but most of our growth is from current grower base transitioning into organic.”
OPN Connect: You come from a family of growers. What prompted you to become an organic grower?
KS: “We represent multigenerational farmers from first generation to fifth generation. For many this is the first generation that has farmed organically.
Several have farmed certified organic orchards for as long as 20 to 30 years.
My family became certified organic for multiple reasons: the niche market opportunities were great, and we had a good farming location for organic production. There are many factors that make organic tree fruit production successful like climate and soil.”
Kevin Stennes, Chelan Fresh
OPN Connect: What changes and trends are you experiencing now? What are the new products and varieties fueling organic growth?
KS: “As the organic apple, pear and cherry supply grows, we are seeing demand grow with it. However, buyers and consumers continue to be more selective and have higher expectations for visual appearance, not varying from their “specs”. Several years ago, retail and wholesale buyers were more willing to vary from their expected specs because the supply wasn’t filling demand. That trend is on the decline.
New products fueling our organic growth are the “club” or proprietary varieties and new varieties like our exclusive SugarBee variety which is half Honeycrisp and half open. Also, the Cosmic Crisp that came out of a Washington State breeding program.
We see opportunities in innovative and convenient consumer packaging, and the ability to connect directly with consumers via social media.”
SugarBee apple from Chelan Fresh
OPN Connect: What are the biggest challenges we face as an industry and what is Chelan Fresh doing to mitigate those challenges?
KS: “From a grower’s perspective, the biggest challenge we face as an industry is the quickly increasing cost of production—largely from labor expenses. Costs are rising faster than the market is bearing. In addition, due to narrowing demand specifications for size & grade, less of the bin is getting packed and sold at an organic premium price.
Margins at the farm are very low. Chelan Fresh is working to mitigate this by developing new markets where possible, utilizing more processor markets, and continuing to produce more fruit within the demanded specifications, whether that be variety, color, size or grade.
We have removed Red Delicious, Golden Delicious, Cameo, Jonagold and most Braeburn from our organic offerings and are replacing those volumes with more Honeycrisp, SugarBee and (soon) Cosmic Crisp!”
OPN Connect: What does your crystal ball tell you about the future of organic fresh produce look like in 10 years and what opportunities lie ahead?
KS: “I think both supply and demand will continue to grow and with increased supply, I think margins and profitability will continue to shrink. Due to market pressures, regulations and increased costs, smaller family farms will continue to struggle to remain profitable.
Organic growers need to stay ahead of the trends by planting new exciting varieties and growing fruit that meets higher specifications to meet demand.
Consumers are more engaged and interested in what they are eating. It’s important to connect directly with them and tell your story. Demoing our products in stores the last few years has given us insight into consumer concerns –like wax on apples – but has also provided the opportunity to educate them.”
