Peach growers in California who sell their fruit to the canned and frozen fruit markets are pulling out peach trees in order to offset a glut in the market and enable them to compete with foreign growers.
Go deeper with GlobalData
“We have too many peaches. The Greek imports are just hammering us,” Ajayab Dhaddey, who directs field operations for the California Canning Peach Association, was quoted by the Associated Press as saying.
The canning association, which represents around 80% of growers of canning peaches in the state, said imports from Argentina, Australia, Chile and South Africa have led to a glut in the canned peach industry.
Peach imports have increased from 1 million to 3 million cases in the past three years, according to the association. US farmers have found it difficult to compete with subsidised imports from Greece and Spain, reported the Associated Press.
The canning association approved the tree-pull programme in December to help combat the glut. The programme, which has attracted 83 growers, is expected to eliminate around 1.5 million cases of peaches. Growers participating in the programme agree to not plant peach trees for five years if they do not have a contract with a cannery. They will be compensated for pulling out trees with money from the fees they have paid to the association.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
