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Annual Report 1999

ASPARAGUS RESEARCH

For the past three years, 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 products through higher yielding, better quality asparagus. Harvest of the Guelph asparagus seed has been completed and the Board will have a commercial amount available for sale again this year. The three varieties which were sold this past spring were the Guelph Millennium, G178xG305, and G52xG305 varieties. The G52xG305 variety has been discontinued, however, there is approximately 14 pounds left from last years' harvest. 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. It has been over 20 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 a report submitted by Randy Baker, who has been working extensively on maintaining the seed plot on behalf of the Board:

ASPARAGUS SEED PRODUCTION 1999

In April 1999, cultivar 52 was removed and additional rows of cultivar 178 were planted. Fertilizer and herbicides were applied. Regular checks of the seed production area aided in determining when to apply insecticides and fungicides for adequate control.

Both female lines displayed good flowering. At harvest, it appeared as if we needed to place more bee hives inside the enclosure, specifically on the west side as fruit set was weak except for an area close to a bee hive.

Harvesting occurred from September 22nd to October 7th. Workers from Ed DeHooghe farms aided in harvesting and, after seed stripping was completed, the crew removed volunteer plants from the planting using shovels.

We continue to be on course. The labour support at critical times is appreciated and the necessary procedures to produce quality seed continues to be performed in an adequate time frame.

Seed production in 1999 was 50% better than yields in 1998. The potential for larger yields in 2000 is good as plant vigour on male plants is increasing.

The following is a report submitted by David Wolyn and Paul Banks on the University of Guelph Asparagus Breeding Program:

Multi-location Trials of Guelph Hybrids--Table 1

1. Guelph Millennium continues to be the best hybrid at three locations. In 1999, Millennium yielded double that of Jersey Giant at all test sites.
2. Yield: Guelph Millennium > G178xG305 > G52xG305 > Giant
   Quality: Guelph Millennium, Giant > G178xG305 > G52xG305
   Rust Resistance: Giant > Guelph Millennium > G178xG305 > G52xG305
   Guelph hybrids require proper rust management.
3. Small on-farm trials of G24xG305 are recommended until sufficient grower testing is complete.

Breeding Activities

1. New Hybrid Trial- Three supermales (G305,AM050,AC112) were crossed to 21 newly selected females. Seed was produced for all females crossed to G305 while limited numbers of females were crossed to AM050 and AC112. Replicate trials were planted at Cambridge and Simcoe in 1999.
2. Identification of New Supermales- Six new supermales were identified from 24 testcrosses planted in the field in 1998. The best supermales will be crossed to superior females to identify those with long-term breeding potential.
   In 1998, 63 putative supermales were crossed to females and seed was planted in 1999. From preliminary testcross results, 10 new supermales were identified.
   Eighty-seven putative supermales were crossed to females in 1999 and testcross progeny will be planted in 2000.
3. Evaluation of New Germplasm from Crosses of Superior Genetics Stocks- In 1999, over 75 new female and male plants were identified as being vigorous with good spear quality in spring and summer evaluations. Thirty-eight females were crossed to G305 to produce new hybrids for evaluation. From this group, plants susceptible to rust were culled in the fall.
4. Planting of New Germplasm for Future Evaluation- Superior male and female clones were intercrossed in 1998 to produce new female and male breeding stocks and nearly 2000 individuals were planted in 1999 and will serve as a potential source of supermales for the future.
5. Germplasm from Old Viking Fields- Two hundred and fifty spears were collected from grower fields in 1999 and will be micropropagated. From spears collected in 1997, 172 clones were planted in 1999 for evaluation. Clones planted in 1997 were evaluated for vigor, rust tolerance and/or spear quality and 44 lines were kept for further evaluation.

ASPARAGUS SEED SALES

In 1999, 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. Only 29 pounds were sold in Ontario this past spring of which the main varieties were Jersey Giant and Jersey General. The Jersey seed purchased decreased substantially (70%) due to the new Guelph varieties available for sale.

The Board was very pleased to have a commercial amount of the Guelph all-male hybrid asparagus seed available for sale. In 1999 the Guelph Millennium and G178xG305 seed was all sold and approximately 14 pounds of the G52xG305 is left in inventory. The bulk of the Guelph seed was sold out of province (the U.S.A. and Quebec).

It was the decision of the Board to increase the price of the Guelph seed slightly in order to make our prices comparable to the U.S. varieties. The Guelph Millennium asparagus seed will be sold for $500.00 per pound; and the G178xG305 variety for $400.00 per pound. The G52xG305 variety left from last years harvest, will be sold for $300.00 per pound.

ASPARAGUS SEED SALES - (Pounds)

1991	1992	1993	1994	1995	1996 1997	1998	1999
11	47	120	144	359	226.5 381	217	421

As can be seen by the charts above and below, the volume of asparagus seed sold has increased considerably. The Guelph Millennium and G178xG305 are the recommended varieties as these are all male hybrids which show very promising results and promise to double and triple the yields of the Jersey Giant variety, according to trials.

1999 BREAKDOWN OF SALES BY VARIETY
	---------- Pounds ----------
	Jersey	Guelph
Destination	Varieties	Varieties	Total
Board Members	2.00	67.00	69.00
Root Producers	27.00	20.00	47.00
Out of Province	0	305.00	305.00
Total	29.00	392.00	421.00

BREAKDOWN OF SALES BY YEAR
Destination	1995	1996	1997	1998	1999
	- - - - - - - - pounds - - - - - - - -
Board Members	195.50	61.50	129.75	81.78	69.00
Root Producers	158.00	160.00	223.75	96.25	47.00
Out of Province	5.50	5.00	27.50	39.00	305.00
Total	359.00	226.50	381.00	217.00	421.00

Value 1998 - $141,354 Value 1999 - $150,547

Direct grower and root producer purchases have declined slightly as growers are delaying in planting the new all Canadian male hybrid lines until in-field results on yields, quality, etc. is obtained. The out of province sales increased drastically and this is due to the high yielding results which is showing in U.S.A. and Quebec and also because the purchase price of the Guelph seed is lower than the purchase price of the Jersey varieties.

PROMOTION

This year the Ontario Asparagus Growers' Marketing Board did a joint promotion project with Et Tu Caesar. The Et Tu Caesar salad kits were manufactured by an Ontario company, Linsey Foods. The kit offered shoppers all the ingredients they needed except fresh produce. The Et Tu Caesar kits have 100% distribution in grocery stores across the province and are shelved in produce departments, not grocery. If a shopper purchased a box of the Et Tu Caesar Salad Kit and one pound of Ontario asparagus, a 50 cent redemption coupon was provided. Also printed on the coupon was an "Ontario Asparagus and Grilled Chicken Caesar Salad" recipe. This join promotion worked out extremely well.

This project was supported by the Small Projects Initiative Committee of the Agricultural Adaptation Council and the Board received 85% funding through CanAdapt which amounted to $9,432.64.

The Board purchased 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. A "new" recipe brochure was designed and 33,500 copies were printed up, and 10 boxes of the printed plastic bags were also purchased. The pamphlets were distributed to growers, trade shows, etc. at no charge. Through the Grow Ontario Program, the Board received 50% funding for all of the items listed above. On behalf of the asparagus industry, we would like to thank the staff of Grow Ontario for all of their help and support.

Some may feel that the Board does not do enough for "fresh" asparagus growers, however, there is an extensive amount of time spent in promoting asparagus and completing applications, etc. for government funding. This in turn has saved growers a substantial amount of money plus has made consumers more aware of "Ontario" asparagus.

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, 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 and 1999, the Board had asparagus acreage measurements 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. In 1998 there were a few startup problems, however, this year things ran quite smoothly and the acreage measurement maps were excellent.

The total cost of the acreage measurer and average cost per measurement decreased by approximately 40%, and the average cost per acre remained the same as in 1998. The chart gives a cost comparison on an annual basis of the acreage measurement program:

SUMMARY OF ACREAGE MEASUREMENT PROGRAM
	1997	1998	1999
Total Producers Measured	52	42	44
Total Acres Measured	427	1,360	860
Average Acres Meas./Grower	8.2	32.4	19.6
Total Cost of Measurer	$2,313	$4,079	$2,580
Average Cost/Measurement	$45	$97	$59
Average Cost/Acre	$5.42	$3.00	$3.00

ACRES PLOUGHED OUT
1999	220
1998	314
1997	176
1996	35
1995	206
1994	160

The amount of acres ploughed out have decreased slightly from last year. The 220 acres removed by growers this year consisted primarily of die outs in the field, and older, inefficient patches. Approximately 115 acres of the high yielding varieties were planted this year.

The following chart depicts the grower population by size of planting. This year we have 106 growers, which is down 7 from last year. Although relatively unchanged in past years, the number of growers in the 2 to 5 acre category has decreased from 26% to 20%; in the 5 to 10 acre category the number has increased from 24% to 27%; and in the 50 to 100 acre category the number has decreased 7% to 4%.

1999 PRODUCER GROUPINGS BY SIZE OF TOTAL ACREAGE
Size of Acreage	# of Producers
2 to 5 acres	21	20%
5 to 10 acres	29	27%
10 to 20 acres	20	19%
20 to 50 acres	28	26%
50 to 100 acres	4	4%
100 acres +	4	4%
Total	106	100%

ACREAGE REPORT BY VARIETY
Variety	1999 and 1998	1997	1996	1995	1994	1993	1992	1991	1990	>10 YEARS	TOTAL
Viking	0	0	0	0	0	0	0	0	0	38	38
Viking KB3	0	0	0	0	0	0	0	0	0	52	52
Viking 2K	0	0	0	0	0	0	0	0	0	307	307
Viking 2G	0	0	0	0	1	0	0	0	0	153	154
REH106&103	0	0	0	0	0	0	0	0	0	44	44
Lucullus	0	0	0	0	0	0	0	0	0	53	53
Centennial	2	10	12	10	0	2	0	16	26	344	422
Syn4-56	11	44	19	26	25	20	0	0	0	28	173
GH87	0	0	0	0	0	0	0	0	0	10	10
J.Giant	22	19	22	24	35	16	5	0	15	0	158
J.Gem	10	16	12	2	0	0	0	0	0	0	40
J.Knight	57	40	12	16	22	14	0	0	0	0	161
J.General	75	81	124	21	22	6	1	0	0	0	330
Jersey	20	15	27	4	0	0	0	0	3	0	69
Guelph	154	7	5	0	0	0	0	0	0	0	166
Other	6	0	0	0	3	0	0	0	0	0	9
Total	357	232	233	103	108	58	6	16	44	1,029	2,186

The above chart shows the acres planted by year by variety. Approximately 49% of the acreage planted is greater than ten years of age, however, it is optimistic to see that 357 acres are new plantings (117 acres in 1999 and 240 acres in 1998). The total acreage consists of approximately 25% of the Viking varieties; 35% of the Jersey varieties; 19% of the Centennial variety; and 8% of the Guelph varieties. 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 2000 we will be dividing out the three varieties (Millennium, G178xG305, G52xG305) since the amount of acres planted are no longer just trial amounts.

ACREAGE REPORT BY DISTRICT - - - 1999- - - AGE - ACREAGE REPORT BY DISTRICT
	Dist.	Dist.	Dist.	Dist.	Dist.
Description	No. 1	No. 2	No. 3	No. 4	No. 5	Total
No. of Producers	21	49	11	8	17	106
Percent of Total	20%	46%	10%	8%	16%	100%
Acres Planted 1999	65	26	13	0	13	117
Acres Planted 1998	82	111	14	0	33	240
Acres Planted 1997	34	182	7	0	9	232
Acres Planted 1996	53	131	28	15	6	233
Acres Planted 1995	14	63	5	4	17	103
Acres Planted 1994	6	75	15	0	12	108
Acres Planted 1993	0	50	8	0	0	58
Acres Planted 1992	0	1	5	0	0	6
Acres Planted 1991	4	12	0	0	0	16
Acres Planted 1990	21	0	11	0	12	44
Acres > 10 Years	173	561	107	55	133	1,029
Non Bearing Acres	147	137	27	0	46	357
Bearing Acreage	305	1,075	186	74	189	1,829
Total Acreage	452	1,212	213	74	235	2,186<
Percent of Total	21%	55%	10%	3%	11%	100%
Avg. Age - Years	7.3	8.6	9.4	11.5	9.7	8.6
Avg. Acres/Grower	21.5	24.8	19.4	9.3	13.8	20.6

Avg. Acres/Grower - 1998 20.0 Avg. Age/Acre - 1998 9.9

Avg. Acres/Grower - 1997 21.6 Avg. Age/Acre - 1997 9.7

Avg. Acres/Grower - 1996 20.8 Avg. Age/Acre - 1996 10.9

The "Acreage Report by District" chart shows the state of our asparagus plantings as at September 30, 1999. The bearing acreage has decreased by 58 acres from 1998 and 117 acres were planted in 1999, causing the total acreage to decrease by approximately 76 acres. The Board sold approximately 115 pounds of asparagus seed in Ontario this year, which means that 85 to 115 acres of asparagus should be planted next year. The number of producers declined by 6.75%.

District 1's total acreage has increased by 49 acres from 1998; District 2 has decreased by 52 acres; District 3 has decreased by 9 acres; District 4 has decreased by 9 acres; and District 5 has decreased by 55 acres.

1999 ACREAGE REPORT BY DISTRICT FOR THE LAST TEN YEARS
	Dist.	Dist.	Dist.	Dist.	Total
Year	No. 1	No. 2 & 5	No. 3	No. 4	Acreage
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
1998	403	1,554	222	83	2,262
1999	452	1,447	213	74	2,186

From the years 1990 to 1992, the acreage had declined an average of 420 acres per year and from 1993 to 1995, the acreage had declined an average of 110 acres per year. In 1996 and 1997, the increased level of new plantings and seed sales has generated an increase in acreage. From 1998 to 1999 the acreage had declined by 76 acres which were old, low yielding patches.

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. In actuality, District 2 has 1212 acres and District 5 has 235 acres.

CROP PRODUCTION

An extensive survey had been conducted to support the production/sales chart presented on the following page. This task is difficult as some growers are reluctant to divulge any information or representative data. All information is strictly confidential and is only used for the annual report. It would be greatly appreciated to obtain this information in order to complete accurate data reports. Overall, 1999 was viewed as a fairly good production year in most areas of the province, with an average yield of 2,014 pounds per acre. The average yield had increased approximately 13.5% from 1998.

The average asparagus price was slightly higher this year, increasing from $1.34 per pound to $1.44 per pound. The average return on farm gate sales was $1.71 per pound (down 5 cents from last year); wholesale was $1.41 per pound (up 14 cents from last year); and processing was $1.38 per pound (up 4 cents from last year). The processing prices set were the same as last year, however, more 5-1/2" product was shipped in 1999, which increased the average processing price.

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

1999 ONTARIO SUMMARY SALES / PRODUCTION / ACREAGE SURVEY BY DISTRICT
	A C R E A G E			SALES IN '000 LBS				VALUE		YIELD
Dist.	Mature	Exempt	Total	Farm	Wholesale	Proc	Total	$/lb	$/ac	lb/ac
No. 1	305	147	452	84	238	177	499	$1.49	$2,435	1,633
No. 2	1,075	137	1,213	198	2,001	212	2,411	$1.41	$2,798	2,242
No. 3	186	27	214	113	138	33	284	$1.61	$2,130	1,520
No. 4	74	0	74	15	73	0	88	$1.62	$1,920	1,181
No. 5	189	46	236	18	346	42	406	$1.39	$2,392	2,145
Total	1,829	357	2,186	428	2,796	464	3,688	$1.44	$2,895	2,014
% of Total	84%	16%	100%	12%	75%	13%	100%
(1998)	1,887	375	2,262	386	2,522	440	3,348	$1.34	$2,377	1,774
	83%	17%	100%	12%	75%	13%	100%

SUMMARY OF CROP AND MARKET STATISTICS FOR THE PAST FIVE YEARS
Description Used by Ontario Processors	1995	1996	1997	1998	1999
No.1 Grade - 5-1/2 inch ('000 lbs)	77	115	99	12	57
No.1 Grade - 7 inch ('000 lbs)	943	726	377	420	395
No.2 Grade - 7 inch ('000 lbs)	31	29	11	8	12
Total Processed ('000 lbs)	1,051	870	487	440	464
Total Ontario Crop ('000 lbs)	4,171	3,783	2,621	3,348	3,688
Ontario Bearing Acreage	1,975	2,039	1,989	1,887	1,831
Total Farm Value ('000 $)	5,364	5,127	4,134	4,476	5,301
Average Return $/lb.	1.29	1.36	1.58	1.34	1.44
Yield (lbs./acre)	2,112	1,856	1,317	1,774	2,014
Percent of Crop Processed	25.2	23.0	18.6	13.1	12.6
Number of Processing Growers	51	52	51	44	40
Minimum Prices (dollars/lb.) - Processing
No.1 Grade - 5-1/2 inch	1.72	1.83	1.83	1.83	1.83
No.1 Grade - 7 inch	1.26	1.34	1.34	1.34	1.34
No.2 Grade - 7 inch	0.66	0.70	0.70	0.70	0.70

1999 (1998) 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	199 (260)	192 (200)	96% (77%)	41% (46%)	10 (11)
District #2 & 5	255 (200)	247 (209)	97% (104%)	52% (48%)	28 (31)
District #3	39 ( 25)	33 ( 27)	85% (108%)	7% ( 6%)	2 ( 2)
District #4	0 (0)	0 ( 0)	0% ( 0%)	0% ( 0%)	0 ( 0)
Total	493 (485)	472 (436)	96% ( 69%)	100% (100%)	40 (44)

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 at organizing and scheduling the shipments of asparagus. This is a very difficult job trying to predict the amount of product growers will deliver and scheduling shipments on these predictions. "Mother Nature" occasionally can make this job difficult as well. This year, the processing season ran fairly smooth, with no major problems arising.

This year, the Board had a new processing program developed, however, there are a few changes that need to be made and there are parts of the program which need to be completed. How this system works is when growers deliver their asparagus to either the Langton or Thamesville receiving stations, the delivery data is entered into the computer and printed out on a grower certificate. At the end of each day, all data is e-mailed to the Board office, which then provided an actual inventory of asparagus on a daily basis. Having a better marketing system will allow the Board to be more efficient and make it possible to assemble loads quicker, which in turn will provide processors with fresher, better quality asparagus. Please note that the Board received 75% funding for this program through the Tobacco Diversification Program.

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. Growers delivered 96% of their contracts, and 84% of our processor commitments were fulfilled. The percentage difference is due to the trimming waste. Last year growers delivered 90% of their contracts and processors received 84% of their contracts. Comparing the 1999 total deliveries to the 1998 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

	1995	1996	1997	1998	1999
Total Revenue	$133,264	$81,104	$124,156	$129,192	$194,594
Total Expenses	$106,301	$109,722	$111,999	$115,114	$130,400
Net Profit (Loss)	$26,963	$(28,618)	$12,157	$14,078	$64,194

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 1999 due to government funding received for the development of the all-male University of Guelph seed at the Simcoe plot; for promotional items (bands, bags, etc.); and for upgrading the Board's computer system and programs. The total grants received amounted to approximately $40,000. Sales of the Guelph asparagus seed also contributed to the increased revenue. In analysing the other accounts of the Board, almost all expenditures and revenues were on budget.

The following is a summary of the Board's operating costs in respect to office staff and directors expenses from the years 1985 to 1999.

Year	Office Staff & Sales Manager	Office Travel	Directors P.D. & Exp.	Honourariums	Total
1985	$45,491	$6,365	$27,485	$1,250	$80,591
1986	$52,287	$8,057	$19,553	$1,400	$81,297
1987	$69,461	$7,675	$39,184	$1,400	$117,720
1988	$63,992	$7,206	$38,019	$1,400	$110,617
1989*	$95,614	$8,111	$28,386	$1,475	$133,586
1990*	$73,583	$6,559	$24,340	$1,250	$105,732
1991	$46,553	$0	$18,667	$1,250	$66,470
1992	$32,839	$1,179	$29,198	$1,250	$64,466
1993	$37,745	$715	$32,952	$1,250	$72,662
1994	$35,342	$378	$37,157	$1,250	$74,127
1995	$37,458	$715	$47,502	$1,250	$86,925
1996*	$41,081	$124	$65,538	$0	$106,743
1997*	$39,845	$411	$59,540	$0	$99,796
1998*	$35,622	$610	$70,048	$0	$106,280
1999*	$33,043	$301	$63,899	$0	$97,243

NOTE:
1985 & 1986 - There was not a sales manager
*1989 & 1990 - The Board handled the marketing of fresh asparagus.
*1986 to Present - The Guelph seed block was developed in 1996, which
increased the directors per diems and expenses for these years.

These numbers have been taken from the Board's audited financial statements.

SUMMARY

There has been some condemnation by a few growers in respect to the directors' expenses incurred, which is very disheartening. The lack of recognition of substantial efforts will undoubtedly hurt the industry through the loss of a very valuable director. We should look back to the years when the Board was in financial distress and look at what has been accomplished since then. A lot of time and effort had to be put forth in order to get where we are today.

A number 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.

The Board would like to wish all of our asparagus producers the best for the year 2000.

November 27, 1999