Record cranberry harvest, bog renovation, continues to bolster regional economy

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CARVER, MA, November 22, 2011 -

Cape Cod Cranberry Growers’ Association
One Carver Square – P.O. Box 97 – Carver, MA 02330
Telephone: (508) 866-7878 – Facsimile: (508) 866-4220
www.cranberries.org
NEWS RELEASE

FOR IMMEDIATE RELEASE
CONTACT:     Jeff LaFleur                           Matt Gordon
                        CCCGA                                CCCGA
                        jlafleur@cranberries.org         mgordon@cranberries.org
                        508-866-7878, ext. 11           508-866-7878, ext. 19

Record cranberry harvest, bog renovation, continues to bolster regional economy
CARVER, Mass. (November 22, 2011) – While a year of extreme weather in New England, the cranberry harvest is shaping up to be one of the largest on record in Massachusetts. With signs pointing toward a possible record crop of over 2.4 million barrels, cranberry growers are proving that the industry can thrive in the decades ahead. The three-year average yield on Massachusetts cranberry bogs has climbed from 110 barrels per acre in 2002-2004 to a projected average of over 185 barrels per acre in years 2009 to 2011. This tremendous increase in production would not have been possible if not for increased technology, research, and investments made in renovating cranberry bogs.

In 2007, the Cape Cod Cranberry Growers’ Association was awarded an Agricultural Innovation Center grant of $1.5 million through the Massachusetts Department of Agricultural Resources (DAR) to help cost share cranberry bog renovation projects and to identify novel, low cost methods of renovation. Some four years later, this project is still providing benefits to the growers it helped and is serving as an economic multiplier from additional private investments in renovation activity. As a competitive program open to all Massachusetts cranberry growers through the Cape Cod Cranberry Growers Association, the grant provided up to $10,000 in matching funds per acre of bog renovated. With 29 separate recipients, the program helped with renovation of 160 acres of bog between 2008 and 2009. “As a result of the significant returns on the Commonwealth’s investment to cranberry bog renovation, the AIC demonstrated real environmental and economic benefits that can result from assistance to primary industries such as agriculture that are rooted to their local communities” said DAR Commissioner Scott Soares.

Renovating a cranberry bog requires a complete rebuild of the physical space and replanting the vines. Like grape vines or an apple orchard, cranberries grow on perennial plants that are replanted sparingly and some Massachusetts bogs were last planted at the turn of the 20th century. A newly planted bog is only expected to produce a near-full crop by the third or fourth growing season and will achieve full production in the ensuing years. Besides having to pull acreage out of production for up to three years, a grower must also absorb costs of $35,000 per acre to renovate a bog. The Agricultural Innovation Center grant helped these growers take risks in trying new techniques in renovation.

One immediate benefit that was produced by the Cranberry Bog Renovation Program was that growers needed to hire heavy equipment operators to undertake the initial stages of bog renovation. At a time when the housing and construction sectors no longer employed many equipment operators and contractors, the projects in the Bog Renovation Program spent over $2.7 million in area businesses in total. Hiring equipment operators and truck drivers accounted for $1.35 million. All told, the Bog Renovation Program was responsible for $5.88 million in investments in rebuilding bogs, a highly favorable rate-of-return on the original $1.5 million grant from the Agricultural Innovation Center.

Cranberry growers continue to recognize the economic benefit of these renovation projects as yields greatly surpass the previous crops. Whereas the average yield for Massachusetts bogs was just over 100 barrels per acre ten years ago, some growers are now seeing yields triple that, and some new hybrid varieties have not yet reached full production and are already achieving yields of over 400 barrels per acre. “Being reimbursed for a portion of the costs of my renovation project allowed me to try several new techniques, including using transplanted vine stock of a new cranberry variety and installing drainage tile,” says Carver grower Brett Meredith. “My bog before renovating was barely breaking even financially because of consistently poor crops but it has already produced more this year than it had in decades.” Renovated bogs are providing a burgeoning cranberry market with the fruit needed for new products.

“The cranberry industry is a traditional cornerstone of the Commonwealth’s economy, and we must continue to discover new and creative ways to fortify our industry and help it grow,” Senate President Therese Murray (D-Plymouth) said. “ Just last year, we marked our century-long commitment to the Massachusetts cranberry industry, and I pledge my continued support as we move forward in this new century and beyond our economic hardships. The continued growth of the cranberry harvest in Massachusetts is great news and I’m confident that the cranberry business in our Commonwealth will continue to thrive and lead the way for many years to come.”

New cranberry products are driving sales and the sweetened dried cranberry (SDC) has been one of the fastest growing segments in the industry. "Ocean Spray continues to see growing demand for cranberries internationally, especially SDCs, so we need the fruit from this crop to meet that demand," said Mike Stamatakos, vice president of agricultural supply and development at Ocean Spray. "We are investing $45 million in expanding our SDC production capacity in our Middleboro facility and have already begun construction on our manufacturing network's 8th SDC line."

Renovated bogs are helping to fuel this growth as the large fruit that are a characteristic of those new varieties are highly valued for being made into sweetened dried cranberries. Foreign sales of cranberry products have grown quickly over the last decade, from 600,000 barrels of cranberries in 2001 to over 2.2 million barrels last year. “Fortunately, the demand for cranberry products worldwide has increased and this will keep supply and demand in balance,” said Chuck Dillon, President and CEO of Decas Cranberry Products. “The consumption of sweet dried cranberries has been surging on a worldwide basis and we have had increases of 30% in volume for our sweet dried cranberry product.”

With final crop statistics to be released in January, it remains to be seen if 2011 was a record cranberry harvest in Massachusetts. But in the meantime, cranberry farmers will continue to plan for growing their own production through better applications of technology, renovating, and planting new varieties so as to allow for more people to enjoy the taste and health benefits of the cranberry.

About the Cape Cod Cranberry Growers' Association
The Cape Cod Cranberry Growers’ Association, one of the oldest farming organizations’ in the United States, was originally formed to standardize the measure with which cranberries are sold. Today, the Association represents more than 325 cranberry growers in Southeastern Massachusetts and serves to support and enhance the industry, educate growers and the public, and fund research. These growers farm 14,200 acres of bog and maintain a total of 62,000 acres of wetland and upland support land. The $88 million dollar farm gate value of the crop makes the cranberry industry the largest food crop in Massachusetts.

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