December 11, 2008

Grand Rapids, Mich. - Today, the Michigan departments of Agriculture (MDA) and Environmental Quality (MDEQ) and Michigan Cranberry Council signed a Memorandum of Understanding (MOU) to expand the state’s cranberry industry and serve as a model of environmentally sound cranberry production. The ceremonial signing kicked-off a day-long educational conference on the economic potential of Michigan cranberries held as part of the Great Lakes Fruit, Vegetable and Farm Market EXPO at the DeVos Center in Grand Rapids.

“Our state has the ability to establish a strong cranberry industry that is both economically viable and environmentally sound,” said Don Koivisto, MDA Director. “The MOU signed today and the educational session underscores the dedication that our two agencies and the Michigan Cranberry Council have to further expand the state’s $63.7 billion food and agriculture industry and further diversify the state’s economy.”

"The DEQ is a strong supporter of environmentally sound agricultural practices," said Steven E. Chester, DEQ Director. "This agreement will help keep our resources safe while also growing our economy."

During the conference, various experts noted that national cranberry production is “significantly lagging” behind demand, as evidenced by sales and production trends of Ocean Spray Cranberries, Inc.™ - the largest handler of cranberries in the United States, which wants 5,000 additional acres in the U.S.A. A Michigan food processor, Graceland Fruit of Frankfort, also stated the need for more Michigan-grown cranberries to meet market needs with growth spurred by the health and nutritional benefits of this “super fruit.”

The new MOU establishes participation in an annual review of Generally Accepted Agricultural and Management Practices (GAAMPs) for Cranberry Production along with a “Site Review Team” looking at potential properties for new cranberry farm development. The GAAMPs provide technical and regulatory guidelines for the cranberry industry. The site review team will provide technical assistance and a quick response back to persons interested in determining the suitability of a site for development of a cranberry operation.

The Cranberry Site Review Team is composed of experts from Michigan State University (MSU), MDA, and MDEQ.

Also presented today was a study conducted by the MSU Product Center and commissioned by the Michigan Cranberry Council, Michigan Farm Bureau, and the Michigan Food Processors Association, to identify the economic impact of expanded cranberry production in Michigan in order to meet increased consumer demand for cranberry juice, dried fruits, processed products and fresh market needs.

The economic report outlines the two scenarios of expansion - - increasing production by 500 acres or by 2,500 acres. By increasing cranberry production by 500 acres, the annual economic impact would be $5.93 million, with an additional 75 jobs created. The one-time economic impact of this 500-acre addition would be $30.66 million, with 216 jobs created during the construction phase.

By expanding Michigan cranberry production by 2,500 acres, the annual economic impact is estimated to be $29.67 million, with an additional 383 jobs created. The one-time economic impact of this 2,500-acre addition is estimated to be $153.28 million, with 1,082 jobs created during the construction stage. The net impact of cranberry juice concentrate manufacturing is estimated to be $14.7 million, with an additional 103 jobs created.

A complete copy of the study is available at the MSU Product Center website, or at http://www.michfb.com/mfb.

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Editor's Note: Photos from an October 15, 2008 visit by MDA Director Don Koivisto and MDEQ Director Steven E. Chester to DeGrandchamp Farm near South Haven www.mda.state.mi.us/galleries/2008cranberries/index.html.