Below-freezing overnight temperatures were recorded across much of Michigan and Wisconsin, April 25 and 26, but the cherry industry seems to be faring okay, unlike the freeze of 2012 that took 90% of the crop.
“I think we came out pretty well in cherries from the cold weather,” says Nikki Rothwell, a Michigan State University Extension specialist and coordinator of the Northwest Michigan Horticultural Research Center. “I think we have isolated damage in some sites, particularly in trees in holes. However, I think both sweets and tarts will come out of this cold alright.”
While damage from freeze events is still being assessed, early observations suggest some damage in peaches, tart cherries and pears at the West Central Michigan Research and Extension Center, according to a report by Emily Lavely of MSU.
Climate change is a stressor, Rothwell says. “As we have the craziest weather, cherries are often impacted because they bloom so early,” she says. “This year I think we got lucky with the early warm-up and cold temperatures the end of April.”
Harvest, particularly in recent years, has been highly variable, as the 2020 and 2021 crops also got nipped by frost.
Beyond weather and pests, the tart cherry industry in Michigan, which produces 70% of the nation’s crop, has many challenges ahead, as supply and demand continues to be unbalanced, pushing grower prices downward. “Markets need a boost, and at this time, it is costing growers way more to produce cherries than they are receiving for them—not a healthy economic situation,” Rothwell says.
Many predict there will be a right-sizing of the industry over the course of the next few years.
In 2022, Michigan produced 180 million pounds of tart cherries with a value of $36.5 million. The 2023 crop is a little less, estimated at 120.5 million pounds.
Wisconsin tart cherry production totaled 12.9 million pounds in 2022, up 23 percent from 2021 production levels, according to the USDA, National Agricultural Statistics Service – Noncitrus Fruits and Nuts 2022 Summary. The value of Wisconsin's utilized tart cherry crop totaled $2.63 million in 2022.
Outlook challenging
In the short-term, tart cherry growers will continue to lose money, especially if they are not vertically integrated with the processing. “Independent tart cherry growers are price-takers, which is not a good position to be in when there is an oversupply,” says Sara Trattles, vice president of agribusiness lending for GreenStone Farm Credit Services.
Grower payment from independent processing plants averaged about 15-20 cents per pound in 2023, which doesn’t cover annual operational and harvest costs, let alone orchard establishment and land control costs, according to a recent MSU study putting the total cost of production between 40 and 45 cents per pound.
It’s been like this for some time, as 18 to 32 cents a pound was the price from 2017 to 2021.
Some tart cherry growers are becoming more diversified with agritourism activities and u-pick operations. Some have gotten more vertically integrated, controlling more than just the growing segment of the industry. Others are pulling out trees, as the grim outlook has future generations turning away, as pressure to sell for development continues to grow. “It’s a beautiful area and is highly desirable, which is driving land prices,” Trattles says.
To put additional pressure on land, a lucrative horse show industry is taking off in the area. “It creates tension, and even without the horse show industry, it’s beautiful up there and people really want to have those views,” Trattles adds.
Some growers are faring better than others, influenced by size, dynamics, location, and access to processing and labor.
Some growers have held on by borrowing against their land to help during shortfall years. Many are not getting paid for their own labor or factoring in depreciation on their initial tree investment. They are hoping for an equalization of supply and demand and pricing to become sustainable.
Unlike sweet cherries, which are generally sold as a fresh market crop, tart cherries are a delicate, thinner-skinned fruit that must be processed quickly — frozen, dried, juiced and canned — and is often used in pies, jams and muffins, squeezed for juice, or dried for salads and such.
The oversupply is also fueled by recent below the cost of production cherries, juice and dried product imports, mainly from Turkey.
“As cherries come out of market, there’s an opportunity to get some balance, but imports have impacted that ability,” Trattles adds. “It isn’t fair in a lot of ways – the dumping of cherries on our market and competing with home-grown product. We need to get that in front of the consumer, so at some point in time, they will be looking at where their food is coming from… and where do we trust our food supply.”
She says legislation to limit imports could help stabilize the market.
Cherries and their juice are a superfruit – providing muscle recovery after exercise, memory boost, antioxidants and natural melatonin to help with sleep habits. “Ten years ago, I had not heard about drinking a cherry mocktail before bed. There’s a lot of great qualities of cherries that could provide hope and momentum, but the short-term is not good,” Trattles says.
There’s also a declining number of processors and problems securing labor.
“Being vertically integrated is key at this time, until supply and demand can better meet. That’s the key where we see people making money in the cherry industry,” Trattles says.
