2023 Peach Production and Prices

Peaches are in shorter supply in the U.S. Southeast this year, and consumers are paying the price. While the USDA has not released their official 2023 crop production estimate for peaches yet, reports from Georgia indicate substantial crop loss.

Some Georgia industry observers say many growers have suffered devastating losses to their crops from a combination of weather factors, including a March freeze. Peach harvest in Georgia usually begins in May and ends in August.

The shorter crop in Georgia and a later start in California resulted in stronger peach prices this June compared with a year ago.

Price Spike

On June 9, about 25,200 grocery retail stores were promoting peaches at an average price of $1.70 per pound, according to the USDA retail report.

In contrast, last year at the same time, 36,124 grocery stores were promoting peaches at an average price of $1.54. In 2021, about 38,700 grocery stores promoted peaches at an average price of $1.16.

Grower prices for peaches were also running higher in mid-June, the USDA reports. The average f.o.b. price for U.S. peaches was $33.45 per carton on June 10, up from $20.50 per carton at the same time a year ago.

Worst Case for the Peach State

The 2023 peach crop in Georgia is a “worst case scenario,” said Phillip Brannen, extension fruit specialist at the University of Georgia.

Warmer-than-normal winter temperatures were punctuated by a March freeze and then followed immediately by hotter-than-normal temperatures.

“The peach trees didn’t receive enough chill hours during the winter to produce a strong crop,” says Brannen. “And the March cold snap damaged the fruit further. That was a double whammy to growers.”

Growers in middle Georgia may have only 5% to 10% of a crop, and whatever harvesting there is will be accomplished by bagging fruit in the field rather than running their packing lines, according to Brannen. Many H-2A field workers typically brought in for Georgia’s peach harvest have been sent home.

Many growers are now dealing with crop insurance adjusters to attempt to recoup some of their losses. “This is a real hit as far as production,” Brannen said.

In 2022, Georgia’s 24,800 tons of peaches ranked a distant third in the U.S., trailing California’s 475,000 tons, and South Carolina’s 67,400 tons.

Brannen said he has heard that South Carolina’s peach crop has fared somewhat better than Georgia’s but also is far less than its full potential.  South Carolina will have much more volume than Georgia, but much of it might not get packed.

California Cruising

“The biggest supplier of U.S. peaches is in good shape,” said Ian LeMay, President of the California Fresh Fruit Association. California tree fruit shippers told The Packer earlier this season that full crops of tree fruit were expected from that state in June, July and August. The combination of ample water, plenty of chill hours and little stress on the trees should result in good quality and good sizing.

LeMay said the later-than-usual start, about 10 to 14 days behind normal, was notable. However, he said harvest was active and increasing based on the latest reports from the orchards.

“We have a healthy crop, and what we're hearing out of the orchards is that the fruit is eating probably the best it has in years and it is being sent all over the U.S. and all over the world,” said LeMay. “We're hoping that we can continue with a good summer. We definitely have a crop that we're looking forward to market this year.”

EDITOR’S TAKE:

Unfortunate circumstances for Georgia and parts of South Carolina, but things look very good for California peach growers. It is also unfortunate for consumers that prices are substantially above last year, only adding salt to the overall food inflation wound. The good news, however, is those growers who do have a crop will reap the benefits of much improved farm gate prices. And hopefully those unable to harvest a crop in 2023 will have crop insurance that will help offset their losses. CAD members in Georgia and South Carolina should be aware of what their growers may be experiencing. Perfect time to promote AgPack®, a great way to help growers reduce their operating costs going forward. For CAD members in California – full steam ahead with promoting your products and services to peach growers in your area!