Post by atimberline on Feb 2, 2009 11:57:24 GMT -5
this article, below, gives you an idea of the castles and fief-doms that even now, but much more in the future are going to surround genetics and varieties... It is typical in this day and age for money-smart breeders and seed/plant/nursery businesses to form an exclusive customer base for the mutual financial gains...
edis.ifas.ufl.edu/document_hs364
New Paradigms in Fruit Production
During the past ten years, dramatic changes occurred in international apple production and marketing and could serve as a model for Florida subtropical peaches. An international market glut of apples, even of premium value cultivars like 'Gala' and 'Fuji', reduced the climatic and market window advantages of traditional apple production regions. These crop surpluses coincided with the merging of supermarket chains into mega groups, depending on a few commodity or crop category managers who eliminated a whole class of wholesale buyers. Large buyers consequently began to set crop quality standards ranging from best management practices to food safety and third party certification by private companies as part of a continuous improvement process.
To avoid oversupply of even popular cultivars and resulting low prices, a new marketing strategy evolved. When new cultivars are developed as intellectual property and patented, exclusive licensing to a marketing agency as a brand franchise or club variety can prevent oversupply and low prices. Such a marketing agency controls nursery production, acreage planted, and crop marketed, and could be the exclusive marketer. For example, a new apple cultivar, 'Jazz', developed by HortResearch, a private New Zealand fruit science company, was licensed to a marketer, who approved acreage planted, production, and marketing of this new cultivar in New Zealand, France, and Washington state. A number of other patented brand names like 'Cara Cara' navel orange, 'Kandy Primo' and 'Sunnygold' melons and 'Grapple' (a 'Fiji' apple dipped in a Concord-grape-flavored solution) are being marketed as sweeter varieties.
The club varieties are a means to control planting and marketing of new patented cultivars to maintain long term premium prices. Following this strategy, subtropical peach production could rapidly expand in Florida, providing a profitable specialty crop. Fresh-packed, tree-ripe fruit could be marketed as high value produce rather than as a broad seasonal commodity. Patented cultivars could be exclusively licensed to grower investors operating as a business. These businesses would own exclusive rights to UF-patented subtropical peaches, operating as production and marketing entities to control nursery production and orchard development, to provide yield-based royalties to support research and extension programs, and ultimately to manage market supply for profitable grower and investor returns.
A key feature of this production and marketing system is the selection of qualified growers who can produce consistently high quality, premium fruit rather than commodity fruit. In this context, commodity fruit refers to fruit of uniform quality, grown in large quantities by many different producers. Commodity fruit production has become subject to strong pressures for production efficiency and profitability. Even new fruit cultivars that have strong demand and high prices initially are quickly adopted by growers and subject to overproduction that eventually depresses prices. International industry groups, like those of apple growers, are shifting emphasis from commodity production to high value premium fruit marketing.
This club variety concept depends on sizeable initial investment linked with consistent brand and market development. Such new relationships among plant breeders in the public and private sectors, growers, investors, and marketing agents have changed international apple markets and have implications for the development of a subtropical peach industry in Florida. For nurseries and growers, these new arrangements could involve costs for tree, acreage, and production royalties but could also bring membership in a carefully managed organization that enables long term profits. The University of Florida stone fruit breeding program, now at a critical point in its course, is developing patented, low chill, non-melting or firm-fleshed cultivars for a growing Florida stone fruit industry. Lack of an organized marketing strategy could result in overproduction.
The Florida southern highbush blueberry industry, which has grown from 1,000 acres in 1994 to almost 3,000 acres in 2005, is a good example of a rapidly developing alternative crop industry with average prices over the past seven years ranging from $4.00 to $5.00 per pound. However, growers are already voicing concern about the effect new plantings could have on current high returns. Another option would be to use the club variety model to develop a new, subtropical peach industry from the beginning, in contrast to an already established brand name apple industry apple or a trademarked, geographically located, Vidalia onion industry. Risks are certainly involved, but the international stature of Florida's peach cultivars, our early market window during April and May, and the rapidly growing local Florida market in proximity to large urban markets like Orlando and Tampa, makes Florida a strong competitor against other north American production regions like southern California or Mexico.
Substantial private investment with exclusive licensing within a club variety concept may be needed for the rapid development of a subtropical Florida peach industry, especially for the development of new cultivars. Mature fruit can be harvested from individual peach cultivars over a 7- to 10-day period, emphasizing the need for a range of new cultivars to provide fruit for an 8- to 10-week season. Although new to Florida growers, this breeding, production, and marketing strategy, already pursued by other fresh fruit industries, may be the key to maintaining our competitive advantage in both Florida and international markets.
edis.ifas.ufl.edu/document_hs364
New Paradigms in Fruit Production
During the past ten years, dramatic changes occurred in international apple production and marketing and could serve as a model for Florida subtropical peaches. An international market glut of apples, even of premium value cultivars like 'Gala' and 'Fuji', reduced the climatic and market window advantages of traditional apple production regions. These crop surpluses coincided with the merging of supermarket chains into mega groups, depending on a few commodity or crop category managers who eliminated a whole class of wholesale buyers. Large buyers consequently began to set crop quality standards ranging from best management practices to food safety and third party certification by private companies as part of a continuous improvement process.
To avoid oversupply of even popular cultivars and resulting low prices, a new marketing strategy evolved. When new cultivars are developed as intellectual property and patented, exclusive licensing to a marketing agency as a brand franchise or club variety can prevent oversupply and low prices. Such a marketing agency controls nursery production, acreage planted, and crop marketed, and could be the exclusive marketer. For example, a new apple cultivar, 'Jazz', developed by HortResearch, a private New Zealand fruit science company, was licensed to a marketer, who approved acreage planted, production, and marketing of this new cultivar in New Zealand, France, and Washington state. A number of other patented brand names like 'Cara Cara' navel orange, 'Kandy Primo' and 'Sunnygold' melons and 'Grapple' (a 'Fiji' apple dipped in a Concord-grape-flavored solution) are being marketed as sweeter varieties.
The club varieties are a means to control planting and marketing of new patented cultivars to maintain long term premium prices. Following this strategy, subtropical peach production could rapidly expand in Florida, providing a profitable specialty crop. Fresh-packed, tree-ripe fruit could be marketed as high value produce rather than as a broad seasonal commodity. Patented cultivars could be exclusively licensed to grower investors operating as a business. These businesses would own exclusive rights to UF-patented subtropical peaches, operating as production and marketing entities to control nursery production and orchard development, to provide yield-based royalties to support research and extension programs, and ultimately to manage market supply for profitable grower and investor returns.
A key feature of this production and marketing system is the selection of qualified growers who can produce consistently high quality, premium fruit rather than commodity fruit. In this context, commodity fruit refers to fruit of uniform quality, grown in large quantities by many different producers. Commodity fruit production has become subject to strong pressures for production efficiency and profitability. Even new fruit cultivars that have strong demand and high prices initially are quickly adopted by growers and subject to overproduction that eventually depresses prices. International industry groups, like those of apple growers, are shifting emphasis from commodity production to high value premium fruit marketing.
This club variety concept depends on sizeable initial investment linked with consistent brand and market development. Such new relationships among plant breeders in the public and private sectors, growers, investors, and marketing agents have changed international apple markets and have implications for the development of a subtropical peach industry in Florida. For nurseries and growers, these new arrangements could involve costs for tree, acreage, and production royalties but could also bring membership in a carefully managed organization that enables long term profits. The University of Florida stone fruit breeding program, now at a critical point in its course, is developing patented, low chill, non-melting or firm-fleshed cultivars for a growing Florida stone fruit industry. Lack of an organized marketing strategy could result in overproduction.
The Florida southern highbush blueberry industry, which has grown from 1,000 acres in 1994 to almost 3,000 acres in 2005, is a good example of a rapidly developing alternative crop industry with average prices over the past seven years ranging from $4.00 to $5.00 per pound. However, growers are already voicing concern about the effect new plantings could have on current high returns. Another option would be to use the club variety model to develop a new, subtropical peach industry from the beginning, in contrast to an already established brand name apple industry apple or a trademarked, geographically located, Vidalia onion industry. Risks are certainly involved, but the international stature of Florida's peach cultivars, our early market window during April and May, and the rapidly growing local Florida market in proximity to large urban markets like Orlando and Tampa, makes Florida a strong competitor against other north American production regions like southern California or Mexico.
Substantial private investment with exclusive licensing within a club variety concept may be needed for the rapid development of a subtropical Florida peach industry, especially for the development of new cultivars. Mature fruit can be harvested from individual peach cultivars over a 7- to 10-day period, emphasizing the need for a range of new cultivars to provide fruit for an 8- to 10-week season. Although new to Florida growers, this breeding, production, and marketing strategy, already pursued by other fresh fruit industries, may be the key to maintaining our competitive advantage in both Florida and international markets.
