Nov 5, 2007

Q&A: Young Fruit Growers Optimistic About Future of Industry

The Fruit Growers News sought the opinions of young people from fruit-growing families who were considering entering the family business.

What do they think about the future? Are there opportunities? Barriers?

Here are what three of them had to say.

How do you see the future of the fruit business? Are you optimistic, and why?

Benjamin D. Wenk, Three Springs Fruit Farm, Aspers, Pa.
I have a pretty optimistic outlook on the future of the fruit business. From what I can tell, people are starting to be more interested in where their food comes from, and that can only be a benefit to American growers – thinking specifically of concerns some folks have regarding competition from China. Similarly, we’re in close proximity to some urban areas that have a growing demand for good, local food. It’s definitely a time of transition for the industry here in the East, but I believe those who are willing to adapt to these changes and do it quickly will have the opportunity not only to endure, but grow as well.

Ellen Hollabaugh Vranich, Hollabaugh Bros. Inc., Biglerville, Pa.
I am very optimistic about the future of the fruit business. While I was initially threatened by the push of organics in the marketplace over the past few years (we are a producer using IPM), we have really grasped the opportunity to help educate our consumers about what Integrated Pest Management really is and how it differs from (or mirrors) organic practices. While “organic” is still a very hot topic in the United States, we are certainly seeing the consumer starting to recognize that buying local is more important than buying organic, and it is this trend that gives me great faith in the future of our business and our industry.

Our farm is also in a geographic location that has already seen a lot of growth and is expected to continue seeing growth due to our proximity to Washington D.C. and Baltimore. We are seeing younger, more affluent and more educated consumers entering our market all the time. These are people who have the desire to learn, to accept change and to consider that even on an individual basis they can make a difference.

Mark Stennes, Stennes Orchards Inc., Pateros, Wash.

I’m very optimistic about the future of the fruit business. Demand is strong, prices are high, people are willing to pay high prices and the trend of eating healthier products is on the rise. New technology (planting/training systems) is helping us grow more fruit in the target grades and sizes. Demand for organic is incredibly high, but supply is growing and prices will eventually modify.

What is your current situation?

Wenk:

I returned to our family fruit farm full time this past February. I grew up on the farm and worked there on and off during the summers leading up to my senior year of high school. I had aspirations of going into music education when I was looking at colleges, but came to the realization that my interest in music was more a passionate hobby than a career. I graduated from Penn State in 2006 with a degree in agroecology and a minor in horticulture. I’m now the seventh generation of my family to farm in this area and I’m overseeing weekly farmers’ market trips to Philadelphia, in addition to diversifying our crops to meet our market demands.

Vranich:

Our business, Hollabaugh Bros. Inc., was started in 1955. Today, 52 years later, three members of the third generation, together with the second generation, own and operate the family’s 500-acre farm. Whereas we once grew largely processing apples, we now retail and wholesale a majority of what we grow and have diversified into many kinds of tree fruits, small fruits, vegetables and pumpkins to supply our ever-growing retail market.

I personally have been involved with the business since before I could walk and talk, and have worked in almost all the facets of our business at one point or another, from retail to business administration to production. I graduated from the Pennsylvania State University in 2006 with dual degrees in agribusiness management and Spanish. While I interviewed at a number of agribusinesses, I knew I always wanted to come back to the family business to help take it to the next level, and I did so upon graduation last May. Today I work as the assistant market manager and the assistant business manager, helping to manage the day-to-day operations of the retail market, do general accounting, maintain and update the Web site, give school tours and do just about anything else that needs to be done to fill in on any given day.

Stennes:

We are currently farming 22 varieties of fruit on 260 acres: 115 acres of pears, 60 acres of cherries, 65 acres of apples, 15 acres of pluots and 5 acres of plums. We farm nine locations spread over 55 miles, so my job requires a lot of time driving. About 70 percent of our acreage is certified organic. We grow about 225,000 boxes of fruit annually. We are involved in different business ventures as well: commercial properties, land development, retail and a joint venture with an organic baby food manufacturer in Los Angeles. That being said, my main focus is in the orchard company. I am general manager of Stennes Orchards Inc., and I oversee 10 full-time employees and up to 250 pickers throughout the season. My tasks include overseeing all of the horticultural practices as well as budgeting, planning, cost analysis, organic certification and employee safety. I was born into a multi-generational fruit business. I am fourth-generation, and our family has been farming since 1894. I knew from an early age that I wanted to continue, along with my twin brother Kevin and my father Keith, to keep the farm viable and the business growing. My education includes a bachelor’s degree in business administration and two associates degrees, one in supply chain management and one in tree fruit production.

What you do need to do, what needs to happen, for you to move into your farm business in ways that are profitable and personally rewarding to you?

Wenk:

In a lot of ways, it was the way that I entered into the family business that has been particularly rewarding. Once I settled on agriculture as my career path, I was always sure that I’d return to work here full-time at some point. It took the opportunity to expand our operation into retail through our farmers’ market trips and the new crops that I oversee to lure me back so quickly. The extra responsibilities associated with this new part of the business were something that motivated me, and I feel like I’m making an important contribution. Making a significant and new contribution to our family’s business has been the most rewarding part.

Vranich:

What I see as the next step for our business are some major renovations and additions at our retail market. We want to add an in-house bakery, better school-tour facilities, larger floor space for displays and indoor bathrooms. Continuing on with the trends from the first question, I feel like these things will really help us continue on successfully and profitably in this business. Just being a part of the business and seeing things I’ve done to help expand our retail market are great rewards. Since it’s a family business, I’m in it for success. We’re in it together as a team, and getting to work with my family doing what I love to do is the best reward there is!

Stennes:

We have been in a constant process of renewing orchards, trying to predict niche markets and grow high-quality fruit. We are constantly trying to stay at 9 o’clock on the maturity clock and not get too old or stagnant in our business model. We are always looking for better ways to plant, train and grow orchards to make it profitable, rewarding and fun.

How does your farm business need to change to meet your needs and desires?

Wenk:

I felt I needed to do something new to justify my place in the business. My father Dave and uncle John who manage our farm were very open to considering the ideas I had, and were supportive when I settled on Philadelphia and farmers’ markets. Their willingness to assign significant responsibilities to me and their mutual desire to grow the business in these ways was very encouraging. They’ve allowed me to devote land to the vegetables and berries I planted this spring, and I anticipate we’ll be expanding this part of our business going into next year’s growing season as well.

Vranich:

As I stated in the previous question, I think some of those things are changes that most certainly need to take place to meet what I feel are the needs of this business. We only retail about 30 percent of what we currently grow. That number is ever-increasing, and I think we need to help continue that increase by continuing our diversification of the produce we grow and by offering more value-added products at our retail market.

Stennes:

My father has let me contribute to decision making for the past eight years, so I have been able to make decisions that will benefit my future. He has always been aggressive in renewing orchards and diversifying to meet future market needs. That being said, I didn’t take over a farm that was old and unviable. It had been kept viable and successful. We have tried systems such as high-density organic Bartlett on trellis and superspindle organic early Fuji at 3,600 trees per acre. We have been growing organically for 10 years. We are opening a new retail store next spring that will partially feature our 22 varieties of fruit, as well as high-quality fruit from other growers. We are trying to get a larger percentage of our fruit to local markets, where the profit margin is significantly higher and the reward is greater. My brother runs our marketing and has recently been awarded a vendor code with Whole Foods northwest division. We are working with various high-end chains in the Seattle area, with the vision of more and more of our fruit being sold locally and having more control over our marketing.

How will your upbringing, training and education make an impact on your farm in the future?

Wenk:

Certainly, all of these things will have a significant impact on the future of our operation. I learned a lot about the time and hard work you have to devote to be successful in this industry as I grew up in a fruit-farming family. My work experience on the farm growing up – in addition to the hours I’ve worked in the entomology, horticulture and plant pathology departments at Penn State and at the Fruit Research and Extension Center here in Biglerville – provided an abundance of experiences I draw upon regularly now and will continue to draw from in the future. My experiences in classes at Penn State continue to impact my plans for the farm moving forward. All the knowledge I acquired there – not just a technical understanding of growing systems, but specific innovations in agriculture that could be worth pursuing – in addition to the business courses I took will be an asset and provide a lot guidance in the future of our business.

Vranich:

I was brought up as a part of the farm. I know how to work hard and how to try to find the good in all situations (as a fruit grower, I find the latter is incredibly important). My upbringing is what made me who I am today. My training and education are what will help me, together with my family, take this business to the next level and to continue on into the generations to come.

Stennes:

My upbringing will encourage me to do whatever it takes and to work diligently to make sure my children and grandchildren can carry on a multi-generation business that is profitable and rewarding. My training and education will impact the business in a way that will bring more technology to the company.

How do you want to relate to other young farmers who have similar businesses?

Wenk:

Thus far, I’ve had some great experiences traveling and networking with other young farmers in our industry. The Mid-Atlantic Young Growers alliance is an organization I’ve been a part of for a year or more and I’ve met and chatted with several young growers through that association. Participation in other organizations at the state and county levels has introduced me to others in my generation entering the industry as well. Every opportunity I’ve had to talk to other young growers is something I relish because so many times I can relate to what they struggle with and what they’ve enjoyed. Of all the young growers I’ve met, nearly all of them are very eager and open with their practices and their experiences at their respective farms. It’s been great to learn from them and with them about what’s worked for them and what’s not – bouncing my ideas off of them and likewise sharing my experiences.

Vranich:

We have an organization in our region called the Young Grower’s Alliance, a group of young fruit growers that was started to help each other succeed in our family businesses, to share ideas, to learn, gain connections and grow into an active force in the industry. I find the group incredibly helpful on a personal level, as well as uplifting to the ever-aging population of fruit farmers. There are young people who want to continue on what our elder family members started and carried on for so many years before us!

Stennes:

We are all in this together, and I consider other farmers in similar businesses as friends. We need to all work together so we can keep farming viable and fun. There is a fine line between sharing information and keeping competitive advantages.

Are there any significant barriers to the future for you – labor, financing
and capital, land availability, other family heirs to the business?

Wenk:

The most significant threat to the future of our business is affordable, dependable labor. It’s the 800-pound gorilla in our industry and it’s going to continue to be such until elected officials legislate with everyone’s best interests in mind, rather than upcoming elections. It seems that for the time being, development pressure in our area has cooled, though it’s certainly a consideration as we look to the future. Simply put, our growth and expansion as a business will be a function of labor availability or lack thereof.

Vranich:

There are constant challenges and potential barriers to the future for our farm. Unfortunately, most of them are out of our direct control. Labor issues are certainly on the forefront of our radar recently. We just have to take each day as it is and do our part and hope that our congressmen and women will make the right choices for this country.

Stennes:

Labor is definitely the biggest threat we currently face. We are paying more for jobs to get done, and the price will continue to rise. We currently make decisions based on keeping labor happy, i.e. keeping trees small and growing big fruit. Land availability is another issue, as we farm in a tourism/recreation area where land is being sold for up to $300,000 per acre for waterfront.