Apr 7, 2007

BelleHarvest’s Success Depends on Growers’ Success

Historically, apple growers have purchased trees based on what nurseries have to sell. Sometimes those purchases are not in sync with market demand, meaning growers do not always reap the highest potential benefits. But employees at BelleHarvest Sales in Belding, Mich., have provided growers with a suggested variety mix based on current and anticipated future market demand.

“So if the market is calling for more Galas, we want our growers to already have put more in the ground,” said Mike Rothwell, president of BelleHarvest.

“We attempted to put in front of grower producer groups an ideal variety mix, which will always be an evolving equation.”

Marketers at BelleHarvest ultimately have to sell the apples, and their success is tied to the growers’ success. Therefore, BelleHarvest wants to market the apples in highest demand.

“We’re not just looking at today’s demand, but we’re also looking five to 10 years down the road,” Rothwell said. “The ultimate goal is to provide the best returns back to our growers.”

The suggested fresh apple variety mix from BelleHarvest Sales for the 2004 to 2005 growing season is Red Delicious at 30 percent, Gala at 20 percent, Jonathan at 14 percent and Golden Delicious at 10 percent. The remaining varieties and percent mix can be found in the chart.

BelleHarvest is continually investigating the market and identifying which retailers they can best serve. Then they work hard at getting their products into those stores and expanding those relationships, Rothwell said.

“Retailers are demanding higher quality,” he said. “They are looking for us to put our products on their shelves and move them though. And if we don’t fulfill that function, they will put something else in our spot, such as oranges.”

Quality is a factor that can distinguish a product and an organization from its competitors and therefore win over business, but looking to the future can help a company beat out competitors in the long run.

“You have to sit down on a regular basis and determine where the industry is going and what resources you have at your disposal in order to have your organization stay ahead of the competition,” Rothwell said. “The organization cannot be sitting still – it must what anticipate changes are coming and respond accordingly.”

BelleHarvest Sales has been servicing growers since 1957. Rothwell said the biggest change the company went through was dealing with significant retail consolidations over the last decade.. As a result, there are fewer customers who operate on a much larger scale.

“And the end result is they require more from us,” he said. “You have to identify how best to position yourself to service the needs of the retailers while still trying to maximize returns to your growers.”

Capital requirements continue to be a hurdle in order to service the retailers’ needs of a consistent, high-quality product, Rothwell said. There is sorting technology, modernizing storage technologies and pressure technology – all of which cost a lot of money.

In the next five years Rothwell said he expects ongoing consolidations of the marketing organizations. There will be fewer organizations marketing apples, but they will become bigger.

As a marketer, Rothwell said it’s important to not be afraid to make mistakes because they’re going to happen. However, he said to avoid mistakes as much as possible because they will materialize. But when mistakes do happen it’s important to be willing to adjust the operation immediately.

BelleHarvest markets 90 percent of its product domestically to states east of the Mississippi River. The remaining product is exported to places such as Mexico and the Caribbean.

“We strive to be the best shipper in the state of Michigan through commitment to customer needs and unparalleled service,” he said.

For more information on BelleHarvest Sales, visit www.belleharvest.com.