Fruit Tree Producers Continue to Diversify Marketing Strategies
5/8/2025
Devon Rosebrugh, Financial Services Officer
A fruit producer picking cherries

 

Michigan and Wisconsin cherry and peach growers, like many other fruit growers, are facing challenges with rising input costs due to inflation and low market prices, especially for tart cherries. Volatile weather, including excessive precipitation and warm spells, can lead to disease and pest issues. To combat these challenges, growers are making management and marketing changes to adapt, including diversification and vertical integration.

 

“There is a lot of uncertainty right now as far as the global economy,” says Devon Rosebrugh, financial services officer at GreenStone Farm Credit Services . “We import a large amount of tart cherries from Turkey, which is known to export cherry juice and products at prices lower than American production costs. So, it will be interesting to see if those imports go down with tariffs, potentially creating a larger demand for domestic fruit.”

 

While the tariffs may help with fruit prices, growers face a higher cost on fertilizer inputs, including potash from Canada.

David Ortega, professor of agricultural economics at Michigan State University (MSU), warns: “Uncertainty linked to tariff policies makes it extremely difficult for farmers to plan investments and strategies.”

 

Volatile weather patterns in recent years have also caused havoc. “A lot of precipitation in the spring can cause disease and pest issues, and warm spells in the winter can cause crop damage,” says Rosebrugh.

 

Milder temperatures in southern Michigan this year elevated the risk for leaf curl infections in peaches. “We’ve had the most normal winter weather we’ve had in a lot of years,” Rosebrugh says. “So that’s kind of promising except for one little warm spell we encountered.”

 

Wisconsin is not a major producer of peaches and therefore it is not reported by USDA. However, USDA predicted Michigan’s peach harvest at 7,500 tons for 2024, down from 11,250 tons in 2023.

 

2025 growing season off to a promising start

Michigan and Wisconsin have quickly moved into bloom for all tree fruits. The states are experiencing a more normal bloom season compared to 2024, when the season was advanced.
“Although it has seemed cooler than normal in the northwest region of Michigan, our growing degree day accumulations are similar to our 35-year averages, which makes the 2025 spring more normal,” says Nikki Rothwell, MSU Extension Specialist and Northwest Michigan Horticulture Research Center Coordinator.

The northwest region had stormy weather overnight April 28-29. “We had high winds, lightning and thunder, and there were trees down throughout the region,” Rothwell says.

Michigan growers remain optimistic despite last year’s devastating sweet cherry failure. With a 75% loss in some areas, the failure prompted the United States Department of Agriculture (USDA) to issue a disaster declaration for the Michigan cherry industry.

 

Michigan produces 75% of the nation’s tart cherry crop. However, weather, pests and rising labor costs are among the many challenges that could impact pricing in the future.

“Historically, we’ve been seeing a grower price of 15 to 20 cents per pound for tart cherries,” Rosebrugh says. “MSU research shows that it costs anywhere between 40 and 45 cents per pound to produce it.”

 

Many predict there will be a rightsizing of the industry over the next few years.
According to Horizon Grand View Research, the cherry market in North America is expected to reach a projected revenue of $31.6 million by 2030 with a compound annual growth rate of 7% from 2025 to 2030.

 

A Michigan Department of Agriculture and Rural Development (MDARD) report shows international demand was a big source of revenue for Michigan’s cherry industry last year, with agriculture exports increasing 11% to $2.9 billion since 2023.

 

Fruit producers diversify their markets

Many financially strained fruit growers are becoming more diversified with agritourism activities and u-pick operations. Some have vertically integrated, controlling more than just the growing segment by adding processing and packing lines. Others are pulling out trees as pressure to sell for development continues to grow.

 

“Diversification, with farm stands and farm markets, is getting pretty popular,” Rosebrugh says. “Some type of agritourism or vertical integration is helping growers mitigate costs.”

 

With the creation of the Michigan Cherry Grower Alliance, growers hope to work more closely together to combat challenges. With support from the Alliance, the Cherry Marketing Institute and the Cherry Industry Administrative Board named a new president, Amy Cohn, and hired a new marketing firm, Curious Plot, which will focus on identifying new markets and customers to sell more cherries.

 

In addition, “MDARD has approved a grant to fund a portion of a fulfillment and distribution center for Cherry Republic, which is a large buyer of tart cherries,” Rosebrugh says. “They’re estimating their purchases will go up by one million pounds, which is a decent amount of the market share here.”

 

The sweet cherry harvest is expected to begin in late June and early July. According to Traverse Bay Farms, its timing and yield will be influenced by the weather and pest/disease pressures during the growing season.

 

The tart cherry harvest typically begins in late June or early July, with the peak harvest in July.

 



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