Available Reports 2004 Annual Report 2003 Annual Report 2002 Annual Report 2001 Annual Report 2000 Annual Report 1999 Annual Report 1998 Annual Report 1997 Annual Report

Annual Report 1998

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. Three varieties, which were sold this past spring, were the Guelph Millennium, G178xG305, and G52xG305 varieties. Through field trials, these varieties have proven to be much better than the imported seed that is 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 then planted at the Simcoe Research Station. In the spring of 1997, half of the screening structure had been raised to ensure purity of the seed and the other half of the screening structure was raised in the spring of 1998. In 1999 we will have a commercial amount of seed available for distribution.

It has been approximately twenty 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.

The following is areport submitted by Randy Baker, who has been working extensively on maintaining the seed plot on behalf of the Board:

ASPARAGUS SEED PRODUCTION 1998

Summer-like weather, early in April, accelerated emergence of the first asparagus spears. In mid-April, fertilizer (for vigorous growth) and herbicides (to suppress weeds) were applied. Despite low rainfall to activate fertilizer and herbicides, crop growth and weed control were reasonably good. Spot spraying for grasses in July helped as a follow up. Beetle control was less of a problem this year. Aphids did rear their ugly heads and two applications of chemical reduced the intensity of their presence.

All three female lines displayed good flowering in the critical two months at the beginning of the season. Male plant vigor is still not as good as the female lines. The west half of the planting did not produce the seed yield of the east half. In 1999, supplemental planting of males should help in eliminating this deficiency.

Harvesting started on September 22nd and was completed in six days. A lot of credit for the speedy harvest should go to Ed DeHooghe, who provided me with a hard working Mexican Mennonite family who faithfully worked at cutting fern, stripping berries off, and producing a seed volume that could be de-pulped, washed and dried. We are on the right track.

The seed produced in 1998 goes a long way to meeting grower needs for high yielding, good quality asparagus.

ASPARAGUS SEED SALES

In 1998 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 98 pounds were sold into Ontario this past spring of which the main varieties were Jersey Giant (51 lbs.) and Jersey General (37 lbs.).

In 1998 the Board was very pleased to have a substantial amount of the Guelphall-male hybrid asparagus seed available for sale. We had 73 pounds of the Guelph Millennium variety, 41 pounds of the G178xG305 variety, and 5 pounds of the G52xG305 variety, of which were all sold for $700.00 per pound.

It was the decision of the Board to decrease the price of the Guelph seed in order to hopefully ancourage farmers to produce asparagus, which will in turn benefit the Ontario asparagus industry as a whole. In 1999, the Guelph Millennium asparagus seed will be sold for $400.00 per pound; the G178xG305 seed for $350.00 per pound; and the G52xG305 seed for $300.00 per pound.

ASPARAGUS SEED SALES- (Pounds)

1998 BREAKDOWN OF SALES BY VARIETY (Pounds)

BREAKDOWN OF SALES BY YEAR (pounds)

As you can see from the above chart seed sales have increased substantially over the past four years. 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 last year (1997). A "new", two colour, recipe brochure was designed and 35,000 copies were printed up. These pamphlets were distributed to growers, trade shows, etc. at no charge. The Board purchased 2,000 asparagus appliques which were distributed at conventions, etc. Also purchased were 15,000 pounds of printed elastic bands which had the Foodland Ontario logo and a PLU (product look-up) number imprinted on them. These bands are used for bunching asparagus. Because the Board still had a large inventory amount of these items, more was not purchased in 1998.

The Board will soon be ordering another supply of the printed elastic bands and printed plastic bags, and a new recipe brochure will be developed. The quantity that will be ordered should be enough to last approximately two years. All of these will be available for the 1999 season. We will also be purchasing other promotional items for distribution to trade shows, conventions, etc.

Through the Grow Ontario Program, the Board will again receive 50% funding for all of the items listed above, which in turn will save 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.

On the first weekend of May, the "Good Food Festival" was held in Toronto and the Board had a display booth at this event. This definitely is an excellent way to promote Ontario asparagus since approximately 25,000 to 30,000 people attend this event. The Board would like to thank Claudia Jaques, Ray & Brenda Lammens, and Ed & Sandy DeHooghe for taking turns manning the booth, and for doing such an excellent job. Also, we would like to thank the Ontario Fruit and Vegetable Growers' Association for their financial support by paying for the Asparagus Board's booth space.

Promotion also takes shape in a form we often over-look,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 any functions or meetings are 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 1998, the acreage measurements were completed by a Global Positioning System. The measurements were completed on a computer rather than manually, which provided growers with a more accurate acreage amount and clearer maps of their asparagus plantings. Because this was the first year that the GPS was used, there were a few startup problems and the measurements were completed substanially later than usual. 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 total cost of the acreage measurer was higher, however, the total acres measured has increased and the average cost per acre has decreased. The chart gives a cost comparison on an annual basis of the acreage measurement program:

SUMMARY OF ACREAGE MEASUREMENT PROGRAM

ACRES PLOUGHED OUT

The amount of acres ploughed out have increased considerably from last year. The 314 acres removed by growers this year were generally older, inefficient patches. Approximately 230 acres of the high yielding varieties were planted this year. In most cases, it was "out with the old and in with the new".

The following chart shows that there was no change in grower population. This year we have 113 growers, which is unchanged from 1997. 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.

1998
PRODUCER GROUPINGS
BY SIZE OF TOTAL ACREAGE

ACREAGE REPORT BY VARIETY

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 375 acres are new plantings (155 acres in 1998 and 220 acres in 1997). Under the "Jersey" variety, these are combined Jersey plantings which have been lumped together. All of the "Guelph" varieties have been put together as well, however, in 1999 we will be dividing out the three varieties (Millennium, G178xG305, G52xG305) since the amount of acres planted should not just be trial amounts meaning a row here, a row there.

ACREAGE REPORT BY DISTRICT
- - - 1998- - -
AGE - ACREAGE REPORT BY DISTRICT

The "Acreage Report by District" chart shows the state of our asparagus plantings as at September 30, 1998. Usually the report is as at May 21st annually, however, the acreage measurements were completed late this year. The bearing acreage has decreased by 78 acres from 1997 and 155 acres were planted in 1998, causing the total acreage to decrease by approximately 180 acres. The Board sold approximately 180 pounds of asparagus seed in Ontario this year, which means that 150 to 180 acres of asparagus should be planted next year.

District 1's total acreage has decreased by 21 acres from 1997; District 2 has decreased by 87 acres; District 3 has decreased by 7 acres; District 4 has decreased by 7 acres; and District has decreased by 57 acres.

Approximately 15 acreage measurements were not received until after September 30th, therefore, these acreages will be updated in the 1999 year. Please note, however, that after briefly reviewing through these measurements it was found thatapproximately 75 additional acres were planted in 1998. This amount is not included in the above chart, but will be included in next year's chart.

1998 ACREAGE REPORT BY DISTRICT FOR THE PAST TEN YEARS

From the years 1989 to 1992, the acreage had declined an average of 395 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. In 1998, it looks like we lost 180 acres, however, there is approximately 75 acres of new plantings not included in this year's amount. In actuality the total acreage in 1998 is approximately 2,340 acres; therefore, we lost approximately 78 acres in 1998.

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 is generally difficult as some growers have either been more reluctant to divulge any information or representative data. All information is strictly confidential and is only used for the annual report.

Overall, 1998 was viewed as a fairly good production year in most areas of the province, with an average yield of 1,774 pounds per acre. The average yield had increased approximately 35% from 1997 (1997 was a devastating year).

Theaverage asparagus price was slightly lower this year, decreasing from $1.58 per pound to $1.34 per pound. This was due to the low wholesale prices at the beginning of the season. The average return on farm gate sales was $1.76 per pound (up 2 cents from last year); wholesale was $1.27 per pound (down 32 cents from last year); and processing was $1.34 per pound (down 8 cents from last year). The processing prices set were the same as last year, however, less 5-1/2" product was shipped in 1998, which decreased the average processing price.

These are all blended prices including all grades sold within that category.

1998 ONTARIO SUMMARY
SALES / PRODUCTION / ACREAGE SURVEY
BY DISTRICT

SUMMARY OF CROP AND MARKET STATISTICS
FOR THE PAST FIVE YEARS

1998 (1997) PROCESSING DELIVERIES
NO. 1 GRADE SEVEN INCH EQUIVALENTS

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

The processing deal always seems to be a challenge and we should first of all thank John Jaques for doing an excellent job as the Board's processing sales manager.

In January growers offered approximately 670,000 pounds of No. 1 grade 7 inch asparagus for processing. Because growers only delivered 69% of their contracts in 1997 and because we only have one Ontario processor and one Quebec processor to sell to, the Processing Asparagus Industry Advisory Committee of the Board set some serious guidelines when reviewing the processing contract applications. After reviewing each grower's application on an individual basis and making adjustments where necessary, the total grower contracts then amounted to 485,000 pounds of No. 1 grade 7 inch.

The processing prices remained unchanged at $1.83/lb. for No. 1 grade 5-1/2 inch; $1.34/lb. for No. 1 grade 7 inch; and $0.70/lb. for No. 2 grade 7 inch. Our Quebec processor only wanted one load of 5-1/2 inch asparagus. Of their total load, approximately 21,000 pounds of No. 1 grade 7 inch product was trimmed to 5-1/2 inches. Growers delivered 90% of their contracts, and 84% of our processor commitments were fulfilled. The percentage difference is due to the trimming waste and there was approximately 2,300 pounds dumped. Last year growers only delivered 69% of their contracts and processors only received 68% of their contracts. Comparing the 1998 total deliveries to the 1997 total deliveries shows that growers made a concerted effort to fulfill their contracts this past season.

For those growers who either fulfilled or did their best to fulfill their contracts, the Board would like to thank you for your effort and support.

FINANCIAL REPORT

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 1998 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. Sales of the Guelph and 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.

Last year it was the decision of the Board that when the Guelph seed prices were increased to $700 per pound, any profits that were made on the seed were to be put back into the general funds of the Board. If the Board's operations showed a profit at year end (September 30, 1998), monies were to be rebated to asparagus growers.

The net profit of the Ontario Asparagus Growers' Marketing Board amounted to $14,078 as at September 30, 1998. This will be rebated back to asparagus growers whose accounts are in good standing with the Board as at December 31, 1998. Those who have outstanding licence fees as at December 31, 1998 will not receive this rebate.

SUMMARY

The Asparagus Board, Ontario's first marketing board, is now in 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 and Randy Baker who have been managing the Simcoe plot and have been doing an excellent job.

We should also welcome Jo-Anne Jenner aboard. She has been hired as administrative assistant at the Board and will be time-sharing with the office manager, Jackie Butler.

The Board would like to wish all of our asparagus producers the best for 1999.

November 29, 1998