Annual Report 1997

ASPARAGUS RESEARCH
From 1996 to present, the Ontario Asparagus Growers' Marketing Board has been working extensively on a project with the University of Guelph to develop and make new varieties of asparagus seed available for producers in Ontario. This will give our producers a competitive advantage over imported product through higher yielding, better quality asparagus. We now have some varieties, that through field trials, have proven to be much better than the imported seed that is currently available.

The Ontario Asparagus Growers' Marketing Board will be conducting this project, which will be fairly long-term. The supermale and female plants are being produced through tissue culture at the University of Guelph and we had them planted at the Simcoe Research Station this past spring. In the spring of 1997, half of the screening structure had been raised to ensure purity of the seed. The other half of the screening structure will be raised in the spring of 1998. There will be some asparagus seed available for planting in 1998. By 1999 we should have a substantial amount of seed available for distribution.

It has been approximately nineteen years that the asparagus industry has been working with the University of Guelph to develop high yielding, high quality asparagus seed for Ontario, therefore, this is one of our greatest accomplishments and a lot of people deserve a "pat on the back".



The following is a report submitted by Ed DeHooghe who is the Board's manager of the Simcoe seed plot, as well as chairman of the Board's University of Guelph Seed Committee:

"I am pleased to report that the establishment of the seed plot appears to be a success, but it did not come without a few challenges dealing with a restructured Simcoe station; control of beetles and weeds in the artificial environment of the structure. We did, however, overcome all of the problems. I expect next year to be much easier. We have already bought the spray equipment needed.

This coming year there will be a number of procedures dealing with the drying, handling, and testing of seed which will have to be established. I feel with some help from the staff at the University of Guelph that we can adapt this information to our situation.

Special thanks to Ray Lammens for all of his help this year. Also to the staff of the Simcoe station and the University of Guelph, and all who helped with the moving of the seed plot.



The following is a report submitted by David Wolyn and Paul Banks of the University of Guelph showing the results of the trials of the "new" Guelph hybrids:

ASPARAGUS SEED SALES
In 1997 the Ontario Asparagus Growers' Marketing Board again acted as distributor of the Jersey asparagus seed varieties. The Jersey varieties are a male hybrid line imported from the U.S.A. Approximately 273 pounds was sold into Ontario this past spring of which the main varieties sold were Jersey Knight (129.5 lbs.) and Jersey General (103 lbs.).

The New Jersey Centennial asparagus seed, which was an old line of seed developed by the University of Guelph, is no longer available for sale. Due to the age (1988) and the poor germination (approximately 50% or less) of the seed, the Board sold the seed for $30.00 per pound until December 31, 1996 and whatever was left was disposed of.

The Board had 10.5 pounds of "no name" asparagus seed for sale. The reason the seed was identified as "no name" was because it was not known who the parents were of this seed produced. The seed was available for sale at $150.00 per pound. There will be none of this seed available for sale in 1998.

In 1997 the Board was very pleased to have a small amount of the Guelph all-male hybrid asparagus seed available for sale. We had 31 pounds of the G24xG305 variety, 15.75 pounds of the G178xG305 variety, and 23.75 pounds of the G52xG305 variety, of which were all sold for $400.00 per pound. The Board will again have the Guelph seed available for sale in 1998.

ASPARAGUS SEED SALES - (Pounds)

1989

1990

1991

1992

1993

1994

1995

1996

1997

174

85

11

47

120

144

359

226.5

381

1997 BREAKDOWN OF SALES BY VARIETY ~ Pounds

Destination

Jersey Varieties

Guelph Varieties

No Name

Centennial

Total

Board Members

44

63.25

10.5

12

129.75

Root Producers

204

4.75

0

15

223.75

Out of Province

25

2.5

0

0

27.5

Total

273

70.5

10.5

27

381

BREAKDOWN OF SALES BY YEAR

Destination

1993

1994

1995

1996

1997

Board Members

26

46.75

195.5

61.5

129.75

Root Producers

81

92

158

160

223.75

Out of Province

13.25

5.25

5.5

5

27.5

Total

120.25

144

359

226.5

381

Value 1996 - $118,345     Value 1997 - $149,952

As you can see from the above chart seed sales have increased substantially over the past three years. However, a lot of the old patches are being ploughed out and the new varieties are being planted.

PROMOTION

The Board did an extensive amount of promotion in 1997. A new, two colour recipe brochure was designed and 35,000 copies were printed up. These pamphlets will be distributed to growers, trade shows, etc. at no charge. The Board purchased 2,000 asparagus appliques which will be distributed at conventions, etc. Also purchased were 15,000 pounds of printed elastic bands which have the Foodland Ontario logo and a PLU (product look-up) number imprinted on them and these are used for bunching asparagus.

On the first weekend of May, the "Good Food Festival" was held in Toronto. Claudia Jaques and her sons attended this function and manned a display booth on behalf of the asparagus industry. This definitely was an excellent way to promote Ontario asparagus since approximately 25,000 to 30,000 people attended this event. The Board would like to thank Claudia & her sons for doing such an excellent job.

This year the Board had to order letterhead material so it was felt that why not enhance the Board's image by having a new logo designed. Included on the logo is the year that the Board was established (1938). The new logo is imprinted on the cover of the annual report as well.

Through the Grow Ontario Program, the Board received 50% funding for all of the items listed above, which in turn saved asparagus growers money. Some may feel that the Board does not do enough for "fresh" growers, however, there is an extensive amount of time spent in promoting asparagus and completing applications for government funding. On behalf of the asparagus industry, we would like to thank the staff of Grow Ontario for all of their help and support.

Promotion also takes shape in a form we often overlook, public relations. The Board also spends a great deal of time on other committees for the good of the asparagus industry. The Board has appointments to the Remission of Duty Committee, the Ontario Agricultural Commodity Council, the Ontario Fruit & Vegetable Growers' Association, the Canadian Horticultural Council, the Ontario Federation of Agriculture, and our own Grades/Processing Committee. There are various miscellaneous engagements such as retirements, dinners, openings, radio and T.V. interviews, tours to Washington and Michigan, and meetings with processors on an individual basis. All of this is in addition to approximately 3 days of Board meetings and 6 days of grower meetings. Attendance to each is judged on an individual basis and are participated in only because they are found to be of value to the industry.

ACREAGE MEASUREMENT PROGRAM

The acreage measurement program continues to maintain an acreage inventory for the purpose of assessing annual licence fees. In this manner, each grower provides financial support to the Board for operations which are generic to all of the asparagus growers. In 1997 most of the acreage measurements consisted of growers ploughing out old low yielding patches and replacing them with new plantings of high yielding varieties.

This year the cost of measuring asparagus has remained at relatively the same level as the past two years. The chart gives a cost comparison on an annual basis of the acreage measurement program:

SUMMARY OF ACREAGE MEASUREMENT PROGRAM

1995

1996

1997

Total Producers Measured

63

55

52

Total Acres Measured

606

498

427

Average Acres Meas./Grower

9.6

9.1

8.2

Total Cost of Measurer

$3,130

$2,743

$2,313

Average Cost/Measurement

$50

$50

$45

Average Cost/Acre

$5.17

$5.51

$5.42

ACRES PLOUGHED OUT

1997

176

1996

35

1995

206

1994

160

1993

194

1992

480

The amount of acres ploughed out have increased dramatically from last year. The 176 acres removed by growers this year were generally older, inefficient patches. Approximately 260 acres of the high yielding varieties were planted this year. In most cases, it was "out with the old and in with the new" asparagus varieties.

The following chart shows that there was no change in grower population. This year we have 113 growers, which is unchanged from 1996. The percentage ratios in each acreage category has remained almost identical for the past five years. Even the average acreage per grower of approximately 20 acres has remained constant.

1997 PRODUCER GROUPINGS BY SIZE OF TOTAL ACREAGE

Size of Acreage

# of Producers

2 to 5

26

23%

5 to 10

27

24%

10 to 20

24

21%

20 to 50

25

22%

50 to 100

8

7%

100 acres +

3

3%

Total

113

100%

ACREAGE REPORT BY VARIETY

Variety

1996

1995

1994

1993

1992

1991

1990

1989

1988

>10 YEARS

TOTAL

Viking

0

0

0

0

0

0

0

0

0

52

52

Viking KB3

0

0

0

0

0

0

0

0

0

96

96

Viking 2K

0

0

0

0

0

0

0

0

0

631

631

Viking 2G

0

0

1

0

0

0

0

0

8

297

306

REH106&103

0

0

0

0

0

0

0

0

0

47

47

Lucullus

0

0

0

0

0

0

1

0

0

62

63

Centennial

22

11

1

3

0

28

26

106

111

164

472

Syn4-56

52

27

25

20

0

0

0

31

0

1

156

GH87

0

0

0

0

0

0

0

9

0

0

9

J.Giant

42

31

37

18

6

0

13

0

0

0

147

J.Gem

29

2

0

0

0

0

0

0

0

0

31

J.Knight

52

18

22

18

0

0

0

0

0

0

110

J.General

212

20

22

6

1

0

0

0

0

0

261

Jersey

42

6

0

0

0

0

3

0

0

0

51

Guelph

1

0

0

0

0

0

0

0

0

0

1

Other

1

0

3

0

0

0

0

0

0

5

9

Total

453

115

111

65

7

28

43

146

119

1,355

2,442

The above chart shows the acres planted by year by variety. Approximately 55% of the acreage planted is greater than ten years of age, however, it is optimistic to see that 453 acres are new plantings (209 acres in 1997 and 244 acres in 1996). Under the "Jersey" variety, these are combined Jersey plantings which have been lumped together.

ACREAGE REPORT BY DISTRICT

1997- - -AGE - ACREAGE REPORT BY DISTRICT

Description

Dist.
No. 1

Dist.
No. 2

Dist.
No. 3

Dist.
No. 4

Dist.
No. 5

Total

No. of Producers

19

47

13

10

24

113

Percent of Total

17%

42%

11%

9%

21%

100%

Acres Planted

1997

6

186

7

0

10

209

1996

58

130

28

14

14

244

1995

14

67

6

3

25

115

1994

7

77

15

0

12

111

1993

0

54

11

0

0

65

1992

0

1

6

0

0

7

1991

8

17

3

0

0

28

1990

21

0

8

0

14

43

1989

53

59

10

0

24

146

1988

0

89

0

0

30

119

Acres > 10 Years

257

671

136

73

218

1,335

Non Bearing Acres

64

316

35

14

24

453

Bearing Acreage

360

1,035

195

76

323

1,989

Total Acreage

424

1,351

230

90

347

2,442

Percent of Total

17%

55%

10%

4%

14%

100%

Avg. Age - Years

10.6

9.0

10.1

11.8

11.1

9.7

Avg. Acres/Grower

22.3

28.7

17.7

9.0

14.5

21.6

Avg. Acres/Grower - 1996

20.8

Avg. Age/Acre - 1996

10.9

Avg. Acres/Grower - 1995

20.2

Avg. Age/Acre - 1995

11.1

Avg. Acres/Grower - 1994

20.2

Avg. Age/Acre - 1994

10.6

The "Acreage Report by District" chart shows the state of our asparagus plantings as at May 21, 1997. The bearing acreage has decreased by 50 acres from 1996 and 209 acres were planted in 1997, causing the total acreage to be stagnant. The Board sold approximately 350 pounds of asparagus seed in Ontario this year, which means that 300 to 350 acres of asparagus should be planted next year.

District 1's total acreage has decreased by 28 acres from 1996; District 2 increased by 96 acres; District 3 increased by 14 acres; District 4 increased by 5 acres; and District 5 increased by 3 acres.

1997 ACREAGE REPORT BY DISTRICT FOR THE PAST TEN YEARS

Dist.

Dist.

Dist.

Dist.

Total

Year

Dist.
No. 1

Dist.
No. 2 & 5

Dist.
No. 3

Dist.
No. 4

Acreage

1988

656

2,581

644

209

4,090

1989

630

2,347

546

184

3,707

1990

610

2,149

444

162

3,365

1991

557

1,918

369

146

2,990

1992

438

1,675

284

126

2,523

1993

423

1,496

269

126

2,314

1994

398

1,435

278

92

2,203

1995

391

1,451

209

92

2,143

1996

452

1,599

216

85

2,352

1997

424

1,698

230

90

2,442

From the years 1987 to 1992, the acreage has declined an average of 375 acres per year. In 1993, the amount of plough-outs had been basically cut in half compared to 1992. In 1996 and 1997, the increased level of new plantings and seed sales has generated an increase in acreage.

District 2 and district 5 acreages have been lumped together because it was not until 1989 that district 2 was divided into an additional district.

CROP PRODUCTION
An extensive survey had been conducted to support the production/sales chart presented on the following page. This task has generally been frustrating as growers have been more reluctant to divulge representative data.

Overall, 1997 was viewed as a devastating production year for the province with an average yield of 1,317 pounds per acre. The average yield had decreased approximately 29% from 1996 (1996 was a poor year), which was caused by frost damage and an extremely late start in the season. Asparagus prices were good, with the average price increasing from $1.36 per pound to $1.58 per pound. The average return on farm gate sales was $1.74 per pound, wholesale was $1.59 per pound, and for processing was $1.42 per pound. These are blended prices including all grades sold within that category.

1997 ONTARIO SUMMARY SALES / PRODUCTION / ACREAGE SURVEY BY DISTRICT

ACREAGE

SALES IN '000 LBS

VALUE

YIELD

Dist.

Mature

Exempt

Total

Farm

Wholesale

Proc

Total

$/lb

$/ac

lb/ac

No. 1

360

64

424

99

103

224

426

$1.54

$1,822

1,186

No. 2

1,035

316

1,351

55

1,316

155

1,526

$1.57

$2,318

1,474

No. 3

195

35

230

104

22

28

154

$1.69

$1,334

786

No. 4

76

14

90

50

55

0

105

$1.82

$2,492

1,365

No. 5

323

24

347

51

279

80

410

$1.54

$1,948

1,269

Total

1,989

453

2,442

359

1,775

487

2,621

$1.58

$2,078

1,317

% of
Total

81%

19%

100%

14%

68%

18%

100%

(1996)

2,039

313

2,352

460

2,453

870

3,783

$1.36

$2,515

1,856

87%

13%

100%

12%

65%

23%

100%

SUMMARY OF CROP AND MARKET STATISTICS FOR THE PAST FIVE YEARS

Description

1993

1994

1995

1996

1997

Used by Ontario Processors

No.1 Grade - 5-1/2 inch

0

6

77

115

99

No.1 Grade - 7 inch

1,218

803

943

726

377

No.2 Grade - 7 inch

38

20

31

29

11

Total Processed

1,256

829

1,051

870

487

Total Ontario Crop

3,992

3,344

4,171

3,783

2,621

Ontario Bearing Acreage

2,265

2,089

1,975

2,039

1,989

Total Farm Value

4,611

4,008

5,364

5,127

4,134

Average Return $/lb.

1.16

1.20

1.29

1.36

1.58

Yield (lbs./acre)

1,762

1,589

2,112

1,856

1,317

Percent of Crop Processed

31.5

24.8

25.2

23.0

18.6

Number of Processing Growers

66

55

51

52

51

Minimum Prices (dollars/lb.) - Processing

No.1 Grade - 5-1/2 inch

0

1.75

1.72

1.83

1.83

No.1 Grade - 7 inch

1.15

1.21

1.26

1.34

1.34

No.2 Grade - 7 inch

0.60

0.63

0.66

0.70

0.70

1997 (1996) PROCESSING DELIVERIES NO. 1 GRADE SEVEN INCH EQUIVALENTS

'000 Pounds Contracted

'000 Pounds Delivered

% of Contracts Delivered

% of Total Deliveries

Number of Growers Delivering

District #1

285

(366)

252

(342)

88%

(93%)

49%

(39%)

12

(11)

District #2 & 5

390

(562)

234

(468)

60%

(83%)

46%

(53%)

36

(38)

District #3

62

(81)

25

(73)

40%

(90%)

5%

(8%)

3

(3)

District #4

0

(0)

0

(0)

0%

(0%)

0%

(0%)

0

(0)

Total

737

(1,009)

511

(883)

69%

(88%)

100%

(100%)

51

(52)

The above chart shows the amount of Dist. No. 1 grade 7 inch asparagus each district contracted and delivered. The Dist. No. 1 grade 5-1/2 inch asparagus deliveries were multiplied by 136% in order to reach the Dist. No. 1 grade 7 inch equivalent amount.

This year the processing deal was one of the most difficult and trying situations ever. In January growers offered approximately 921,000 pounds of Dist. No. 1 grade 7 inch asparagus for processing. In mid-March the Board received a letter from Omstead Foods advising that they would not be processing asparagus for the 1997 season, therefore, this only left the Board with one Ontario processor and one Quebec processor to sell to. After an extreme effort by our processing sales manager, John Jaques, to find other markets to sell the unsold asparagus to, and failing to succeed, the Board had to decrease grower contracts by 20% until sufficient processor sales came along. After decreasing the grower contracts by 20%, the total amount contracted by growers was approximately 737,000 pounds of Dist. No. 1 grade 7 inch. The processing prices remained unchanged at $1.83/lb. for Dist. No. 1 grade 5- 1/2 inch; $1.34/lb. for Dist. No. 1 grade 7 inch; and $0.70/lb. for Dist. No. 2 grade 7 inch. Our Quebec processor only wanted 5-1/2 inch product, therefore, the Board had approximately 5,000 pounds of Dist. No. 1 grade 7 inch product trimmed to 5-1/2 inch. This was also a very difficult situation because the Quebec processor only wanted to run asparagus until the beginning of June and the Board had no asparagus to trim until near the end of May. Trying to get some growers to deliver processing product was like pulling teeth. Because the fresh prices were so high, some growers decided not to deliver any or very little processing asparagus which caused the Board to only fulfill 68% of our processor commitments. The balance of their pack requirements had to be imported from Washington.

Despite some gains in recent years, the Board is still plagued by the problem of inconsistent deliveries to our domestic customers in the processing market. It seems that growers do not realize the severity of this, especially now that there are only two processors remaining. If the Board is to retain our domestic processor's loyalty, then we must make a concerted effort to meet processing contracts.

Growers delivered 69% of their commitments, and the Board delivered 68% of our processor contracts. For those growers who did their best to fulfill their contracts, the Board would like to thank you for your effort and support. The Board is working to develop a method to reward growers who live up to their commitments and penalize growers who do not.

FINANCIAL REPORT

1993

1994

1995

1996

1997

Total Revenue

123,359

99,152

133,264

81,104

124,156

Total Expenses

94,534

79,779

106,301

109,722

111,999

Net Profit (Loss)

28,825

19,373

26,963

(28,618)

12,157

The above financial review represents the Board's General Account and does not include the assets, liabilities, and operations of the area committees.

Revenues had increased in 1997 due to the government funding received through the Grow Ontario program for the development of the all-male University of Guelph seed at the Simcoe plot, as well as for promotional items. Increased sales of the Jersey asparagus seed also contributed to the increased revenue. In analysing the other accounts of the Board, almost all expenditures and revenues were on budget.

SUMMARY

Well that wraps it up for 1997. It was one of the poorest years in history, but there have certainly been some very significant accomplishments including new plantings and the development of the all-male University of Guelph asparagus seed.

The Asparagus Board, Ontario's first marketing board, is now beginning celebration of its 60th year of operation. Growers should be very proud of their past accomplishments as it was the founders of the Marketing Board that forged the framework for farm marketing legislation in Ontario. Growers should never forget the intolerable conditions and events that led growers to take control of their destiny through collective bargaining and selling.

A great deal of people deserve a great deal of thanks including our directors, processors, researchers, governments, member bodies, and especially the growers for their continued support, confidence, and cooperation in the Board.

Also, a special thanks and credit should be given to our chairman, John Jaques, who dedicates a great deal of his time and effort in representing the asparagus industry, and also to Ed DeHooghe who has been managing the Simcoe plot and is doing an excellent job.

The Board would like to wish all of our asparagus producers the best for 1998.

December 6, 1997




© 2007 Ontario Asparagus Growers' Marketing Board