Reliable supply of quality fruit is important with organic exports

Achieving a high quality, year-round supply of organic lemons for export markets is possible—and it comes with the reward of premium prices.

Just ask Sam Mayhew, general manager of Oxnard Lemon Co. The Sunkist packer has been handling organics since 2006 when customers began asking for organic product. For the past three years, Mayhew has extended the lemon shipping season to year-round, enabling him to keep his export customers supplied. That means when supplies are tight in the summer, prices for premium organic fruit can double.

Speaking about the export market at the annual California Certified Organic Farmers convention in Ventura, Mayhew said organic growers have more options depending on the season and supply. Growers who produce top quality crops can expect more money in the export market.

"They want organic and they expect perfection. It can't be ugly or have pest injuries," said Mayhew of his Japanese customers' demands. The days of accepting scarred fruit because it is organically grown are gone, he added. Scarred fruit will be downgraded to Choice and at times it is sold as conventional.

Finding that top quality has not been a problem for Mayhew. He said all his organic growers were already in citrus production and knew how to grow a high quality product.

"During the transition to organic, they knew how to farm citrus, prune and use oil sprays. Some of their organic groves look better than conventionally farmed ones," Mayhew said.

Oxnard Lemon's packinghouse has a separate wash and wax line for organic fruit and the lemons are packed in 38-pound cartons or a special 10-pound hand pack for first grade fruit.

While export prices are inviting, there are some challenges to obtaining and maintaining global market access certification. Suppliers—not just growers—must be certified organic and for Japanese markets, there is third-party screening and certification of importer, packaging and warehouse. Mayhew said the process can take four months to complete and includes mountains of paperwork. There must be a separate certification for each commodity and at least one annual audit.

Handling certification paperwork between all parties is time consuming, but much easier when done electronically, Mayhew said.

Other difficulties with exports to Japan include confusion with the country's "non-chemical use" designation. This is produce that is certified grown without the use of chemical pesticides. Buyers have been reluctant to switch from the non-chem fruit to organic due to supply uncertainty, Mayhew said.

Organic Trade Association chief operating officer David Gagnon presented an overview of the current organic export picture and also presented some information about programs that can assist organic growers, processors and distributors who want to enter the export market.

More than half of Organic Trade Association members export either directly or indirectly, reported Gagnon. The 25-year-old association's annual survey also found that most of those operations are small, with sales of less than $1 million a year.

U.S. organic products such as walnuts, citrus and processed foods are being exported to many countries worldwide, Gagnon said. Canada is the biggest market for U.S. organic products and Brazil has great potential as a customer, he said. China also presents opportunities for organic exports, Gagnon added.

Programs to assist growers, processors and distributors to move into export markets are available. This year, the program will receive more than $425,000 from the Foreign Agricultural Service and U.S. Department of Agriculture to help market U.S. organic exports and educate consumers. Plans are under way to connect exporters with international buyers and the public through Biofach in Germany, Reserve Trade Missions at National Products ExpoWest and the annual U.S. Organic Produce Campaign in Canada.

(Cecilia Parsons is a reporter in Ducor. She may be contacted at ceciliaparsons8@gmail.com.)