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How Canadian interest rates may be impacting Ontario apple growers

Most Ontario apple growers are coming to the end of their harvest season on a crop that’s a little bigger than expected. “We’re hearing about really good quality and size,” says Cathy McKay, chair of the Ontario Apple Growers. “Honeycrisp, Empire, Cortland, McIntosh, and Gala should be finished by now while there’s still Fuji to harvest and Pink Lady.”

McKay says Honeycrisp, Empire, Cortland, McIntosh, and Gala (above) should be finished by now while there’s still Fuji to harvest and Pink Lady.

This is welcome news, given the summer in Ontario was rainy, though followed by a hot September. “We often lose days to rain; we can have days where it rains all day. Then, in September, it was beautiful every day for a month, and the color looks really good this year.”

In all, the estimate is that the crop is up 8.5 percent over the five-year average, though that’s a few percentage points down from last year’s crop, which was a sizeable one. “Some growers were enthusiastic about planting high density in the last 10 years, so Ambrosia, Fuji, and Honeycrisp are up a lot over the five-year average because those young trees are coming on now,” says McKay.

Interest rate hikes
That kind of investment into expanding the plantings on newer varieties may now be on pause for younger growers in Ontario who are contending with interest rate hikes by the Bank of Canada. “Interest rates are going to be a large factor in the future of what happens to the industry overall,” says McKay. “Young growers may be rethinking their expansion because they’re seeing that each acre of high-density orchard is now costing a lot of money.”

Ambrosia, Fuji, and Honeycrisp (above) are up a lot over the five-year average because those young trees are coming on now, says McKay.

Meanwhile, on movement, it’s steady for Ontario apples. “I hope demand stays that way, and it often depends on freight rates and the U.S. dollar. Washington did have a big crop this year,” adds McKay.

For more information:
Cathy McKay
Ontario Apple Growers/Nature’s Bounty Farm
Tel.: +1 (905) 440-0966
[email protected]
https://www.naturesbountyfarm.com/
www.onapples.com