US Export Report: Northern Spy Apples Used for Hard Apple Ciders

Mitchell Wolfs

Novemeber 28th, 2017

AGR1110 Sec 102

Introduction of product

Apple production is a huge part of the Canadian economy with 634 million dollars in

revenue and supports 5100 jobs in Ontario alone. Apples have many uses, they can be used in

many man made products such as, cooking, baking, and also the making of apple ciders around

the world. Ciders are becoming more of a preferred drink in todays society. The demand for apples

are increasing more and more by the year (figure 1). Certain apple ciders require hard apples which

arent your everyday consumed apples, they are not sweet and are very bitter tasting. Apple

varieties are separated into four categories, Sweet, Bittersweet, Sharp, and Bittersharp. These

categories are distinguished by different levels of acidity and tannin. Cider companies also need a

balance of a good hard base but also a good sweet finished product. These categories will get used

and mixed together in production to create the perfect cider. Some of the American varieties consist

of the Golden Russet, Newtown Pippin, Baldwin, and Northern Spy. Northern Spy apples are

popularly grown in Ontario around the Great Lake area. The main production areas follow Lake

Ontario, Lake Huron, and Lake Erie. These spots are ideal for growing apples because of the large

bodies of water that moderate the temperature for growing fruits. Apples are produced nationwide

from Newfoundland to British Columbia with 21 million bushels produced on an average year.

Once apples are grown and harvested they can be shipped across the world with proper

transportation. Apples grown along the Great Lakes makes shipping very quick and cost effective

to the United States.

Figure 1. Fresh fruit export value by commodity thousands of Canadian dollars

2012 2013 2014 2015 2016

Blueberries[1][4] 397,946 346,878 377,979 469,147 422,441
Cranberries 74,640 77,837 66,382 88,972 88,469
Cherries[2] 43,377 41,331 54,512 91,561 82,841
Apples[3] 31,108 28,162 41,381 51,335 51,231
Strawberries[4] 1,966 1,396 2,317 2,843 2,789
Grapes[3] 1,482 2,102 1,186 999 1,147
Raspberries[4] 9,223 12,856 14,882 13,780 12,899
Pears and
quinces 41 48 109 110 465
Watermelons 182 2 58 130 440
Almonds[3] 141 55 935 1,994 439
Others 46,112 54,333 54,125 73,774 63,617
Total 606,216 565,000 613,868 794,645 726,778

Costs and Labour

With such high demands on the rise for apples, farmers need to grow and harvest apples

with the highest efficiency possible. Producers are going to need the appropriate equipment to

maximize apple growth and harvest. The equipment needed to maintain and harvest apples would

include a mist sprayer or air blast sprayer, which controls insects and herbicide applications. A

small tractor with 30 60hp, a mower to cut down any weeds and grass under the trees, an apple

picking machine, and a trailer or boxes for apples during harvesting. Most of the equipment used

is optional at the start but if the farm wants to be successful and efficient to meet the demands of

apples, it is going to need all the little equipment which includes tree planters, augers, power

pruning system, brush sweepers and hedgers. All of the equipment has to fit in between your tree

row, which is 6 -10 feet wide. All of this equipment will be needed to reach the demands of the

apples and the size of the machinery will depend on the size of the operation. The size and age of
equipment is another huge factor because of the larger and up to date machinery that the farm has,

and the more it is going to cost the business. The less expenses the farm has the cheaper the running

costs will be. Trees on average for northern spy apples will cost roughly $29.00 - $32.00 in US

currency. This cost will differ depending on the size of tree the farm wants. The business will have

to incorporate all costs such as fuel, chemicals, labour required, and field costs. With farms

expanding an association has to watch over to make sure producers make the quantity of apples

and also the quality of them to make sure the apples meet regulations set by the government. The

Ontario Apple Growers of Canada does this for Ontario farmers.

Disadvantages

Ontario Apple Growers of Canada represent all farmers with 10 acre orchards or more. In

2016, they had 230 members. The OAG (Ontario Apple Growers) began in 2004 when the Farm

Marketing Act was passed. This group provides a lot of benefits that include government relations,

research and development providing up to date information to farmers, and the promotion of

apples. For this company to expand and reach the demand of apples they will have to expand along

the Great Lakes. More northern spy apples will have to be grown in Ontario if the OAG is going

to be able to export apples to the United States. Nearly 16,000 acres are used to grow different

varieties of apples in Ontario. The number of acres used to grow apples will have to increase if

apples are being shipped to the United States in high quantities. The OAG will have to grow more

apples along the Great Lakes. With more acres being used as farm land, this may cause issues with

indigenous people. Many aboriginal communities inhibit the Great Lakes and Georgian Bay

regions where most apples are produced (figure 2). If the OAG association needs to produce more

apples they will likely encounter resistance from these Indigenous communities. Making
arrangements with indigenous people about land will be a major issue because they have a different

set of values regarding land usage. Aboriginal people believe in preserving the land for natures

uses, therefore they do not want agriculture institutions cultivating their lands. It is difficult to find

common ground between these groups due to the polarizing nature of the debate. The indigenous

people believe all land is sacred to them. They insist that all acreage is owed to them for injustices

previously committed on their population and their land. Inversely the agricultural community

seeks to increase their production to support increased demand resulting from population growth.

When acquiring more acreage, the agriculture community will disagree with the First Nations

communities because of the different opinions on land usage. Common ground will have to be

found, for the extension of land used for agriculture purposes. If the OAG needs more land they

will have to negotiate with First Nation people to increase production. Another issue the OAG

association will determine is the development of urban settlements. As population increases so

will the living areas which takes up a sufficient number of acres. This is a growing issue for the

entire agriculture community, this is why farmers have to produce high quality crops for

consumers.
 Figure 2. Map First Nations Communities

Economic Benefits

Despite the struggles farmers might face with obtaining acreage, there are many

environmental benefits to growing and manufacturing Northern Spy apples. Apple orchards across

Ontario provide many opportunities for small rural communities and businesses. Apple orchards

are a growing industry, offering many jobs for Canadians. Agriculture based work is always

looking for more labour due to the growing population. Having apple picking sites brings in more

revenue for that company which can get put back into farm expenses creating a more sustainable
business. Having a well-established business will attract more customers from different towns or

cities, which will help the business to gather more customers as well as increase their overall

profits. With an ever increasing demand for apples, small rural business will contribute to produce

mass amounts of apples that will reach the market requirements. This year in the U.S. apple

growers will not see a record crop, the weather conditions have been tough and the markets are

making a strong demand for apple exports in the year ahead. Northern Spy apples will be in

demand in the United States market due to the growing rise of hard apple ciders. Having a bad

year for growing apples in the United States with a growing need for ciders makes it tough for the

United States Association of Cider Makers to produce enough hard cider to reach export demands

and the countries overall requirements. The United States Association of Cider Makers goal is to

help cider producers in the U.S. by providing important information and resources. Ontario has a

large number of acres to expand their apple production. The Ontario Craft Cider Association

(OCCA) is a company that maintains the provincial cider industry and production in the province.

They promote craft cider and the regional apple producers of Ontario keeping all the ingredients

and production local. The OCCA will have a substantial amount of northern spy apples they could

sell them and export them to the United States. This is one of many environmental benefits because

there will be less waste. Apples can wither within weeks of harvest. Instead of throwing them out

they will have good use in the United states. This all helps out the rising demand of apples needed

for hard ciders.

Manufacturing

There are seven major steps when producing hard ciders. The difference between

producing hard apple ciders to apple juice is letting the apples ferment so yeast can be formed to
create alcohol. Apple juice does not ferment because preservatives are added to the juice so the

natural fermentation does not occur. The first step to manufacture ciders is the harvest of apples

from the trees. Farms can have a labour force to pick all the apples from trees and load them onto

trucks or a harvesting machine to do. Apples are then stored in half ton bins for a week before they

are used. This is so the apples can soften for easier processing. The second step is washing of the

apples, they must be washed to remove leaves, insects, spray, twigs, spray residue and any harmful

bacteria. All the apples are put through a machine that scrubs the apples clean. Once cleaned they

travel along to another worker that separates the whole apples from the damaged ones. The

damaged apples dont get used because of flavor damage from oxidation. Next the apples are

ground to a pulp so the maximum amount of juice can be used. The finer the pulp the greater the

quantity of juice. Step four is pressing which separates the pulp from the juice. The apple sauce is

pressed into a large tank where multiple different types of apple varieties are used to produce the

proper mixer of cider. A balanced cider contains 50% neutral base, 20% tart, 20% aromatic, and

10% astringent. Next the pulp and juice is pumped into plastic tubes that enter a cooling tank. As

it is pumped into the cooling tank it passes through screens of mesh to remove any extra pulp

pieces. The juice is then stored at 0.6 degrees, this gets rid of undesired microorganism. Step six

allows the tanks to sit and ferment for a month or more until it is ready for packaging. The last step

is packaging, before it is pumped into cans it is filtered again to remove anything missed in

previous filtrations. It is then pumped into bottles by a machine and capped and set in boxes ready

for store delivery (How Products are Made, 2017)(figure 3).

 Figure 3. Manufacturing of Ciders

Once the apples are harvested and washed, the fruit is crushed and pressed. The remaining
juice is fermented, creating cider.
Transportation

Exporting to the United States is very complex task due to the transportation and crossing

of the boarder. Transportation is a huge process because it has to be very cost effective for the

Ontario Craft Cider Association. Quick and cheap transportation is what makes a business stand

tall above others because overall, they will have less expenses and have a larger profit.

Transportation methods to the United States can include trucking apples across the border. The

OCCA is based out of Toronto with many providers across Ontario. One of these providers is the

OAG association which looks over all apple producers in Ontario. Most of OAG producers follow

the major freeways in Ontario which make it very easy to access the farms to load apples on the

transport trucks and send them to the United States. A down side to this is some farms dont have

easy access to the freeway and would be quicker to send apples over the Great Lakes. One of these

locations would be Dykstra Orchards Ltd. This orchard produces Northern Spy apples for the

production of ciders and is located near Georgian Bay. For a trucking company to pick up these

apples it would be expensive because it is much more driving. Northern Spy apples would be

getting shipped to Denver Colorado. The United States Association of Cider Makers is located in

Denver Colorado, this is where all the manufacturing of ciders is done and all apples will have to

be shipped there. The trip to Denver is over 2400 kilometers, trucking is the most efficient way to

ship. If there is a train that travels to Denver it is more work unloading trucks and loading the

apples onto a train. Rail travel will be much costlier for labour and time. Another setback to for

rail travel is the train might have to make other stops on the way to the destination which takes

time and apples can wither fast and the longer they are on the train the more risk there is to damage

them. Rail systems might not have the proper crates to hold apples. Apples need to be stored so
they will not get bruised. Proper refrigeration is needed and tractor trailers can supply this for the

Ontario Craft Cider Association and the United States Association of Cider Makers. Storage after

harvest is a huge concern, apples need to be used right once they are taken off the field. Once

producers have harvested all the apples they have to load them onto trucks as soon as possible or

else the apples will start to wither and the taste of the apples will change and they will not be usable

for cider makers. Apples are put into large half ton bins once they reach Denver. The apples will

then sit for a week before they are used.

Competition

Competition between other Canadian apple companies can cause losses for some and gains

for others. Having the best price for your product is very important for the selling and exporting

apples to the United States. When exporting to the United States Association of Cider Makers the

Ontario Craft Cider Association has to offer the best price, quality, and quantity of apples. OCCA

also has to make sure they are profiting from this because a loss is not good for the company and

it will affect all producers involved. The OCCA has to watch out for other regional competitors, a

major competitor is the British Columbia Fruit Growers Association (BCFGA). This company

provides the same support as the OAG association but to all fruit growers in BC. The OCCA has

to make sure they are offering the best price and overall quantity of apples that can used for the

production of apples when selling to the United States. Global competition would be the United

Kingdom or Mexico because they produce a large number of apples but they do not have the

advantage of being so close to the border. Transportation costs and methods would be much higher

for the two countries because they are so much further from the United States Association of Cider
Makers production location. These global producers are much further away from Colorado and

cost expenses for shipping will be much higher than shipping from the Ontario. The United States

getting apples imported in from the United Kingdom and Mexico is very unlikely because of

shipping expenses.
Benefits

Exporting to the United States creates many benefits for both countries. Some benefits to

the United States would include no loss or shortage of apples during production for the United

States Association of Cider Makers. The United States market will still reach the exporting and

selling demands within the country. Reaching their demands for the year and years to come will

mean they will still meet there exporting needs to other countries as well. Reaching the exporting

needs for other countries is very important because the government will keep good relations with

other countries. Markets from other countries might increase the amount of imported ciders for the

years to come. This benefits the United States for the next years because they will have a

substantial amount of exports to meet which gives back to the markets and the producers of ciders.

They will also maintain their quality and quantity of apples used for ciders which means their

markets wont decrease. This will create more revenue in the country giving it a more stable

economy. Benefits to Canada would include the increase the total revenue of Ontario which in the

end gives back to the farmer. This increases the overall production of apples. Having more apples

shipped to the United States creates more job opportunities for men and woman in Ontario and

United States. Some of the jobs available would include, tractor trailer drivers, labour required to

operate a larger farm operation. Some of those jobs would be equipment operators and people to

manage a large farm. The United States Association of Cider Makers will need more people to

sustain the high number of apples being shipped in. Managing large amounts of apples in

containers would require more workers.

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