Another $40M processed apple products purchase coming from USDA, thanks to MACMA

Thanks to the continued efforts of the Michigan Agricultural Cooperative Marketing Association (MACMA), USDA announced it will purchase another $40 million of apple products from U.S. processors, pushing the department's total processed apple purchases to $110 million over the last three years.

Items requested for USDA purchasing consideration include apple juice, along with cups and cans of applesauce.

The purchase - like other previous MACMA-led efforts - helps to further alleviate some pressure from the backlog of apples that Michigan has faced in recent years.

"We had record crops two years in a row, and these purchases help clear the pipeline from that overabundance," said apple grower and member of the Michigan Tree Fruit Commission Scott Hassle.

"I think the industry has started to prepare for the amount of food that we're going to have moving forward, and this just helps us get there, rather than have fruit that's going to go to waste."

While the newly announced purchase is open to any U.S. apple processor for bids, Michigan is uniquely poised to benefit because of the strong processing presence in the state.

Hassel noted that the three major apple growing states of Michigan, Washington and New York need to work together to keep the industry successful and said the latest USDA purchase helps the entire apple economy.

MACMA General Manager Dawn Drake agreed.

"We all need to do well to keep the industry alive," Drake said. "But when we have an oversupply situation it just creates chaos in the marketplace."

That chaos can lead to lower prices for growers who would be forced into moving apples at any price - and undercutting their own market. With that in mind, Drake leveraged MACMA's longstanding relationships when she reached out to USDA in August to submit the purchase request that just came to fruition.

"We want to thank USDA for their support of the U.S. apple industry, and we also truly appreciate the partnership that we have with them," Drake added.

USDA's solicitations for purchases are expected to go out in January, after which processors typically have about two weeks to bid before awards are announced, after which they can start purchasing fruit to fulfill the orders.