1. Recent Trends in Organic Tree Fruit Production: 2002 David Granatstein Center for Sustaining Agriculture and Natural Resources, Wenatchee, WA Organic pears near Chelan, WA

2. Growth of Organic Food Sales Projected $20 billion in sales by 2005 Source: Organic Trade Association

3. Acreages of Main Organic Crops in WA 2002 Cert. Trans. Tree Fruit107732186 Grapes 1410 298 Berries 380 114 Hay 4280 329 Pasture 3043 81 Grains 4110 70 Fallow 2368 88 Herbs 1982 5 Vegetables 9335 43 Total395013381

4. The “Organic Divide” WEST EAST Certified Acres5656 (18%)25,312 (82%) Transition Acres 80 (2%) 3,904 (98%) # Growers 143 (34%) 276 (66%) Ave. Acres/Grower 39.591.7

5. Washington Organic Tree Fruit Acreage* by County - 2001 * certified + transition

6. Estimated World Organic Apple and Pear Acreage - 2001 Certified Acres ApplePear U.S. 17,5722,798 Europe 8,6753,665 New Zealand 2,873 163 South America 1,385 932 Canada 800 60 Total 31,0057,618 China, Turkey ??

7. ApplePearCherryAll fruit WA 65401308 303 8436 CA 4529 842 179 8662 AZ 2800 -- 30 2830 CO 1535 100 133 1923 ID 503 -- -- 506 OR 350 500 25 1180 Others 1015 48 57 1198 Total US17,2722798 72723,835 U.S. Organic Tree Fruit Acreage - 2001

8. Cert.Trans.Total Apples8075 17869861 Pears1771 1921963 Cherries 501 184 685 Apricots 90 12 102 Peaches 195 4 199 Nectarines 78 3 81 Plums 46 3 49 Other 17 2 19 Total 10,7732,186 12,959 Organic Tree Fruit Acreage in WA - 2002

9. Organic Apple Acreage in Washington State Alar Pheromone MD

10. Annual Changes in Organic Apple Acreage – Washington State

11. Organic Orchard Acreage as a Percent of Total Washington Orchards ApplePear 19960.681.49 19970.961.68 19981.051.84 19991.361.87 20002.482.54 20013.905.27 20024.817.14 2002 (C+T)5.877.92 Based on 2001 USDA-National Agricultural Statistics for bearing acreage

12. WA Organic Apple Acreage by Variety 2002

13. WA Organic Red Delicious Acreage

14. WA Organic Apple Prices ($ per box FOB)

16. Recent Organic Apple Prices – Washington ($/box FOB)

17. Price Trends Org Con v Red Delicious Golden Delicious Org Conv Org

18. Price Trends Granny Smith Braeburn Conv Org Conv

19. Price Trends Fuji Gala Org Conv

20. Organic Pear and Stone Fruit Acreage in Washington State

21. Organic Pear Acreage in Washington State

22. WA Organic Pear Acreage by Variety 2002

23. WA Organic Pear Prices ($/box FOB)

24. Price Trends Bartlett D’Anjou Org Conv

25. Price Trends Bosc

26. Washington Organic Soft Fruit Acreage 2002

27. WA Organic Cherry Acreage

28. Challenges NOP implementation Lack of international harmonization – export barriers Retail pricing – U.S. vs. Switzerland

29. Organic Fuji Grower Packer Trucker Retail profit Fuji.225.175.11.44.45.20.15.10 1.09 Broker Estimated Food Sector Share of the Apple Price Retail Markup Fuji 86% Org. Fuji 120% Farm Share of Retail Price Fuji 23% Org. Fuji 23% $1.99/lb $0.95/lb

30. Food quality differences – taste, storability, nutrition, nutraceuticals Combine “organic” with other ecolabels US Farm Bill – Conservation Security Program payments for stewardship Opportunities for Organic Tree Fruit