A Snapshot of the Canadian Apple Industry, 2010

Introduction

Canada has a long and proud history of growing apples. First brought over by European settlers in the 17th century, apples were a pillar of the developing national economy and can be credited with sparking early investment in the young nation. In 2010, the farm gate valueFootnote [note 1] of the Canadian apple crop was estimated at $148.5 million, while total acreage used for apple production represented about 16%Footnote [note 2] of all acreage planted with fruits in Canada. Canadian apple production has been decreasing since 1999. This brochure will highlight the current state of the apple industry in Canada.

Planted Acreage and Number of Farms

According to Statistics Canada data, the total planted acreageFootnote [note 3] for apples has been steadily decreasing over the last decade, as illustrated in Table 1, and was estimated at 18,110 hectares in 2010. This downward trend is due primarily to a switch to other tree fruits as well as to the adoption of high density apple plantings requiring less acreage, as old apple varieties are replaced with newer varieties that are more in demand by consumers.

Over the last ten years, the total planted acreage for apples in Canada has decreased by 7,689 hectares, or 30%. Ontario and British Columbia, which have lost 3,420 and 2,432 hectares respectively since 2001, accounted for the majority of this reduction.

There are five provinces that account for the bulk of apple production in Canada. Due to having unique microclimates, New Brunswick, Nova Scotia, Quebec, Ontario and British Columbia all have suitable environments for growing apples.

In 2010, Ontario had the largest land area set aside for growing apples, making up 36% of the national total, followed by Quebec with 33% and British Columbia with 20% of the area used for growing apples (Figure 1).

New Brunswick, as one of the first settled regions in Canada, has a rich history of growing apples. The varieties grown include the iconic Canadian McIntosh, which the Apple Growers of New Brunswick (Producteurs de pommes du Nouveau-Brunswick) record as being grown there since the 1930s. The popular Honeycrisp apple is a relatively new variety for the province.

Nova Scotia shares a common history of production with its neighbor New Brunswick, and the organization Nova Scotia Apples, a division within the Nova Scotia Fruit Growers Association, claims over 40 ;varieties of apples are grown in the province. The main varieties are the common McIntosh, Red Delicious, Idared, Spartan and Cortland. Nova Scotia now also grows Gala, Jonagold and Honeycrisp, relatively new varieties for the region.

Quebec also has a long history of growing apples which can be traced back to the colonization period. Its producers' association, the Fédération des producteurs de pommes du Québec, names the McIntosh, first grown in the province in 1836, its most popular variety. The other major varieties grown in Quebec are Cortland, Spartan and Empire.

The Ontario Apple Growers lists 16 varieties grown on a commercial scale in the province, including McIntosh, Empire, Spy, Red Delicious, Idared and Spartan. It also grows the relatively new Fuji, Honeycrisp and Ambrosia varieties.

British Columbia, with its warmer winters and moderate summers, is an ideal province for growing apples. The province dedicates about 61% of its orchard land to apples. Newer varieties like Fuji, Ambrosia and Gala are increasingly popular, grown alongside traditional varieties like Red Delicious, Spartan, McIntosh and Golden Delicious. British Columbia is home to 43% of all farms growing apples in Canada, as shown in Figure 2.

Production

In 2010, the total marketed productionFootnote [note 5] of apples in Canada was 336,834 metric tonnes (mt), the lowest in a 10-year period. Table 3 displays the total marketed apple production data since 2001. The volume of the 2010 apple crop was 23% lower than 2009.

Ontario is the largest apple producing province in the country, with a total marketed production of 126,623 mt of apples in 2010, followed by Quebec and British Columbia in order of importance. Ontario has seen its share of the total Canadian marketed production decrease from about 52% in 2001 to 38% in 2010, while Quebec has seen its share jump from 15% to 27% in the same period and British Columbia’s share has remained almost unchanged at 24% of the total marketed production. In the last ten years, marketed production has declined in both Ontario and British Columbia, while it has significantly increased in Quebec, making it the second largest apple producing province behind Ontario. Production in the Maritimes has remained relatively stable.

Figure 3 illustrates the provincial shares of total Canadian marketed production for the five main producing provinces: Ontario (38%), Quebec (27%), British Columbia (24%), Nova Scotia (10%) and New Brunswick (1%).

Coinciding with the drop in production was a decrease in total Farm Gate Value (FGV). In 2010, the total FGV for Canadian apples was estimated at $148.5 million, 18% lower than the previous year. Table 4 shows the provincial and national data for FGV over the past ten years, and Figure 4 illustrates the provincial shares of the total FGV for apples in 2010.

Canadian Imports and Exports

Industry Challenges and Opportunities

Canadian apple growers are facing some unique challenges and continue to operate in an increasingly competitive environment. Marketplace pressures include world oversupply, retailer consolidation, the rising value of the Canadian currency and greater foreign competition in both domestic and export markets. In addition, apple growers, like many other farmers, are at the mercy of Mother Nature and have to deal with weather phenomena like hail and drought, as well as pests and diseases.

Imports are a major challenge for locally grown Canadian apples. The rising Canadian dollar has made American apples cheaper for wholesalers to purchase, despite the greater shipment distances. Capitalizing on the growing consumer trend to "buy local" and promoting the Canada brand could potentially help Canadian apple growers regain some of their lost market share on the domestic market.

The shift to new varieties of apples opens up new opportunities. As seen in the example of Honeycrisp and Ambrosia, new varieties become popular with consumers who are keen to try them, and can be sold at a premium. Value-added products like apple slices, frozen apple products and apple snacks all represent opportunities that respond to consumer demand for quick and convenient healthy foods.

Research and development is also very important in the apple industry's efforts to innovate by developing new varieties that appeal more to consumers, bruise less, taste and look better and are disease resistant.

Maps

Key Resources

Statistics Canada. Publication 22-003-X "Fruit and Vegetable Production".

Statistics Canada. 2006 Census of Agriculture, Farm data and farm operator data, Publication 95-629-XWE.

Statistics Canada. Publication 21-020-X "Food Statistics".

Statistics Canada CATS database. Canadian Export and Import Data.

FAO Stat (July 2011).

Import and export data is based on the following Harmonized System Codes (H.S. Codes):

Imports: 0808101000, 0808101010, 0808101011, 0808101012, 0808101013, 0808101014, 0808101015,0808101016, 0808101017, 0808101019, 0808101020, 0808101030, 0808101040, 0808101050, 0808101060, 0808101070, 0808101081, 0808101082, 0808101083, 0808101084, 0808101089, 0808101090, 0808101091, 0808101092, 0808101093, 0808101094,0808101095, 0808101096, 0808101097, 0808101099, 0808109000.

Exports: 08081000, 08081010, 08081090.

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