“It is without question a very good thing for the industry. However, we do have a lot of work ahead of us.” So says Steve Reinholt, Export Sales Manager at Starr Ranch Growers of the September development in which a trade agreement between the U.S. and India took effect, lifting the 20 percent tariffs on U.S. apples into the country. The retaliatory tariff was put in place in 2018 in response to then-President Donald Trump’s tariffs.
So now, five years later, where does that leave U.S. apple growers and shippers? “India didn’t stop buying apples while we had the extra duty on our products so they’ve been getting covered. We have to fight our way back and get our volumes back,” says Reinholt.
In that time, other markets without the tariff stepped in to supply India with apples. “A lot of the Middle East and the Eastern European countries backfilled that market. While they don’t have the same quality as Washington, they do have us on freight costs and the general lower FOB pricing,” he says.
Freight developments
To battle those high freight costs, longer transit times and strong U.S. dollar, quality and consistent supplies are where the U.S. may be able to make up some ground. In fact, freight is different these days. “Through COVID, freight was a real mess with inconsistent transit times and cancellations,” he says. “However freight costs have come down and reliability has improved a great deal. I’m also pretty sure the shipping lines will react with even more capacity--that’s all turning around.”
What has also changed in those five years is the U.S. apple industry itself. India for instance is a major market for Red Delicious apples. “Unfortunately in that time there’s been a lot of orchard renovation done and there is less Red Delicious to offer,” says Reinholt. “Because of that, it’s going to be a very, very long time, if ever, before we reach the massive numbers of product we used to ship there.”
There is huge demand though for some of the other varietals such as Galas and growing interest in Fujis, Granny Smiths and newer club varieties. “So we’ll definitely have business there but it is going to be a different mix of products than in the past.”
So while it’s going to be a challenge, it’s one Reinholt faces with optimism, particularly following the IFPA Global & Floral Produce convention. “There was a lot of good talk at the show with existing customers and everybody’s excited to get back in the game,” he says. “We’ll see how that pans out as we go through the winter season.”
For more information:
Steve Reinholt
Starr Ranch Growers
Tel: +1 (509) 663 2191
[email protected]
www.starranch.com