The Cherry Industry Administrative Board proposed to restrict sales on 20 percent of the cherry crop in the states this season, in order to balance supply and demand according to Perry Hedin, manager of the Cherry Industry Administrative Board. Michigan is one of seven states subject to a proposed rule that aims to regulate the supply of tart cherries for 2015-2016.
The demand for tart cherries is relatively stable, while the supply can vary and be stored each year, Hedin said.
The board meets each year to analyze the cherry supply and calculate whether it needs to be adjusted to fit demand.
But, John Pelizzari, Chief Operating Officer of Burnette Foods, said the rule is hurting the operations of distributors.
“We have already produced these cherries for sale to our customers and we’re unable to sell them, so we have a lot of costs tied up,” Pelizzari said. “It doesn’t help the cherry industry when you can’t sell a product, particularly when you already have it ready to go.”
Processors could still apply to market the restricted 20 percent of cherries to develop a new product, Hedin said.
The public has until Jan. 19 to comment on the proposed rule. It is then up to the United States Department of Agriculture to make the final decision.
