Saskatchewan Fruit Growers Association

Saskatchewan Fruit Growers
Association
Strategic
Plan
2014 – 2017
Prepared by:
SFGA Executive
October, 2013
Table of Contents
Introduction & Background
pages 2-5
The Strategic Plan
1.1
Strategic Initiatives
pages 5-7
1.2
Industry Overview
pages 7-8
1.3
SWOT Analysis
pages 9-10
2.1
Participants
SFGA Strategic Plan
page 11
page 1
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
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 - 1981 – 2013
Fruit
1981
1986
1991
1996
Strawberry
13
208
311
340
Raspberry
7
36
75
80
Saskatoon
52
169
463
Chokecherry
N/A
Sea buckthorn
N/A
HB Cranberry
8*
Blueberry
2
Black Currant
4
Apples, Cherries, Haskap,
etcetera
197
Total Berry Production
20
296
557
1,094
Source: Saskatchewan Ministry of Agriculture
*
estimated acreage, since berries included with other fruit
** acreage estimates based on personal contacts and SFGA Membership
2001
214
83
916
55*
100*
8*
2
10*
2007
250
86
1100
55
100
8
2
10
2013
300
90
1200
65
100
8
2
12
10
1,398
300+
1911**
500+
2277**
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
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 2005. 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
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 1999.
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 2014-2017 resulted from the SFGA completing
its previous strategic plan in 2013. 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
II.
III.
IV.
V.
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.
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
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)
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”
Website: (links to commonly used suppliers); bulk order form features... of items that are
commonly needed, et cetera
Workshops: marketing; processing; finance; labour; leadership; communications (social
media); international trade guidelines; quality control; et cetera
Branding; merchandizing materials; QR codes; logos; image management; ethics; et
cetera
II.
III.
IV.
Goal 2: Promote Public Awareness of Fruit in Saskatchewan
via...
A. Education
I.
II.
III.
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
Website; e-blasts, and other social media tools
Trade Show participation; including activities like “Open Farm Day” , or Food Expos
B. Advertising
I.
II.
III.
Social Media; periodic twitter feeds
Ads in Tourism Saskatchewan with links to SFGA website
Printed material available from the new SFGA website (Merchandizing materials for
retailers, Upicks, et cetera)
SFGA Strategic Plan
page 6
C. Branding
I.
II.
Canadian Prairie Fruit Federation (CPFF) Brand (package available to SFGA Members
on Website) highlighted at tradeshows, et cetera
Canada Brand (available to SFGA members), materials, guidelines for use, workshops,
et cetera
Goal 3: To support fruit research projects in Saskatchewan
A.
B.
C.
D.
E.
That investigate the health benefits of consuming Saskatchewan fruit
That relate to Value-added processing
That relate to plant breeding, agronomy, and new machinery development
That support plant breeding (at the University of Saskatchewan), development of
agronomic knowledge, and development of economically efficient machinery and tools
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
SFGA Strategic Plan
Stage 2
Stage 3
Stage 4
page 7
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





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







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
Research Areas Associated with the 4 Stages of Development*
Plant
Systems
Product
Market













Breeding
Propagation



SFGA Strategic Plan
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
Market Analysis
Trends
Health Related Claims
Promotion
Functional Foods
page 8
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
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
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
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

is achievable
Processing research money is more readily
available


SFGA Strategic Plan
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
page 10
2. PARTICIPANTS IN THE STRATEGIC PLANNING
Wayne Pearson; SFGA President
Prairie Sun Orchards
Box 387
Vanscoy, SK S0L 3J0
(306) 242-7573
[email protected]
Betty Forbes; SFGA Vice President
Northern Vigor Berries Inc.
1822 Kenderdine Road
Saskatoon, SK S7N 4K3
(306) 955-2319
[email protected]
Mel Annand; SFGA Past President
Creekside Orchard
208 Main Street
P.O. Box 69
Melfort, SK S0E 1A0
(306) 752-2454
[email protected]
Bruce Hill ; SFGA Board Member
Hill Berry Acres
Box 360
Imperial, SK S0G 2J0
(306) 963-2632
[email protected]
Dr. Bob Bors
University of Saskatchewan
Dept. of Plant Sciences
Saskatoon, Sask. S7N 5A8
Work Phone:306-966-8583
Fax: 306-966-5015
Email: [email protected]
Forrest Scharf
Saskatchewan Ministry of Agriculture
3085 Albert St.,
Regina, SK. S4S 0B1
Phone: 306-787-4666
Fax: 306-787-0428
Email: [email protected]
Catherine Duczek
Marketing & Trade Officer
Midwestern Regional Office
Market and Industry Services Branch
Agriculture and Agri-Food Canada
300 – 2010 12th Avenue
Regina, (Saskatchewan) S4P 4K7
[email protected]
Telephone | Téléphone: 306-523-6531
Cellular | Cellulaire: 306-209-0834
Facsimile | Télécopieur: 306-780-7360
Peg Munroe ; SFGA Board Member
Box 717
Balgonie, SK S0G 0E0
(306) 789-1006
[email protected]
Ken Neuman ; SFGA Advisor
Manager, SaskMade Marketplace
1621 8th St E., Saskatoon SK
S7H 0T2
306-955-1832
http://www.saskmade.ca/contact
Vance Lester ; SFGA Board Member
Living Sky Winery
Box 32
Perdue, SK S0K 3C0
306-290-1693
[email protected]
Patty Stewart; SFGA Administrator
Box 1107,
Yorkton, SK
S3N 2X3
(306) 782-0256
[email protected]
SFGA Strategic Plan
page 11