2013 Worldwide Prune Supply Hits Seven Year Low

Sacramento, California (ots/PRNewswire) -

Reduced supply sets price expectations from growers

California prune growers (or dried plums as they're sometimes
known in the United States) are anticipating a reduced crop in 2013,
driven by reduced yields in their orchards following two consecutive
years with strong crops. History has proven a reduction is common
following years of strong fruit production: Declines in 2013 are
estimated in three of the four top producing countries: U.S. (-24
percent), Chile (-41 percent) and France (-20 percent). Based on the
2013 global supply estimate, demand in both domestic and
international markets is expected to be greater than production.

Further impacting the global supply, bearing acreage in California
is estimated at 51,000 acres, down from a peak of 89,000 acres in
2000. The reduction equates to a 43 percent drop in total acreage.
California prune acreage was reduced by seven percent following the
2012 harvest. Other major producing countries are seeing similar
trends, with acreage being removed in favour of higher value crops.

The 2013 California prune crop estimate by the United States
Department of Agriculture's National Agricultural Statistics Service
is 105,000 tons (95,000 metric tons), down from 138,000 tons (125,000
metric tons) in 2012. The carry-over inventory from the prior crop
will offset the supply reduction marginally with the total supply
available to market being down by 20 percent versus the prior year.

To elevate supply pressure even further, California growers are
realising pricing pressure from higher valued tree crops such as
walnuts and almonds. This opportunity to convert prune bearing
acreage to higher value nut crops is stimulating the decline in prune
bearing acreage. The combination of competing higher value crops
along with reduced acreage and supply is creating very strong upward
pricing momentum for California prunes.

During a June 2013 meeting of the International Prune Association
in Italy, it was communicated that major producing countries must
deal with the current economic sustainability issue relating to prune
pricing in the field. Representatives from each of the major prune
producing countries report increasing grower dissatisfaction with
market prices and the continuing trend of growers worldwide to pull
prune acreage and reallocate valuable land resources to more
profitable nut crops.

"This (pricing increase) is an adjustment that was imminent. We
just happened to get some assistance from a smaller crop in
California and globally. I'm optimistic that we'll be back on a
sustainable track and our growers will regain enthusiasm about
keeping their prune orchards," said Donn Zea, Executive Director of
the California Dried Plum Board in Sacramento.

Overall pricing from California is expected to advance by at least
10 percent to 20 percent above the prior year's pricing. Packers are
watching the final days of the growing cycle with great interest, but
so far challenging conditions do not seem to have adversely impacted
the crop. The fruit size and sugar levels indicate good quality, and
there is optimism that the harvest will reach forecasted volumes.

The supply pressure is putting a strain on marketing efforts to
increase demand. Strong California campaigns in both domestic and
international markets that aimed at generating new consumers are at
risk. Key to this new demand is the growing consumer emphasis on
digestive health, supported by the recent approved health claim for
prunes issued by the European Food Safety Authority. Also, promising
research on the benefits of consuming California prunes demonstrates
a potentially significant positive impact on bone density, creating a
buzz among consumers. With these positive messages in place to grow
demand, the supply is critical for the industry. However, plans may
be threatened unless grower returns can be elevated to compete with
higher valued fruits and nuts around the globe.

Zea continued, "This is a product that is enormously undersold.
Once consumers of all ages are aware of the many health benefits,
diverse uses and delicious taste, they'll realise that prunes really
are the whole package. It is critical that consumers are able to
continue to receive these messages."

California Dried Plum Board (CDPB): The CDPB represents 900 dried
plum growers and 20 dried plum packers under the authority of the
California Secretary of Food and Agriculture. Revered as part of
California's rich history, the dried plum remains a vital player in
California's economic wealth. California produces 99 percent of the
United States' and 48 percent of the world's supply of dried plums, a
convenient, healthy snack for today's busy lifestyle.

ots Originaltext: California Prune Board
Im Internet recherchierbar: http://www.presseportal.de

Contact:
Available for comment : Mark Dorman, International Marketing
Director, California Prune Board Europe. Please call Rachel Cullis
Dorsett,
European PR Manager - +44(0)7584-166629