Report of Survey Results
“Understanding the Oregon Fruit and Vegetable Industry”
Profile of Oregon Fruit and Vegetable Processors
Thirty-eight fruit and vegetable processing companies responded to the survey giving a 23% response rate. Among the respondents companies, 52% are small business entities with less than 50 employees, 15% having 50 to 90 employees, 27% having 100 to 499 employees, and 6% having greater than 500 employees (Fig. 1 ).

Forty-six percent of the companies had total annual sales greater than $10 million. This represents the value-added feature in Oregon. Among these food companies, 61% are in the business of processing, 32% are involving in product export, 12% are distributor/broker/trading companies, and 30% are others including retailer, association, and commission (Fig. 2).

These companies manufacture a diverse spectrum of food products. Based on the percentage of production among different types of fruit and vegetable products, the order of most to least is fresh, frozen, dry, concentrate/juice and puree. Computer and Internet use is common among these companies. Sixty-five percent have their own website, and 68% are using e-mail as one of the ways for communication (Fig. 4).

Figure 4

Fig. 4 Computer and internet service used by the Oregon fruit and vegetable processors (total may be more or less than 100% due to multiple answers or not response).
Figure 1

Fig. 1 Distribution by employee number in the Oregon
fruit and vegetable industry (total may be more or less
than 100% due to multiple answers or not response).
Figure 2

Fig. 2 Distribution of types of companies’ activity of Oregon fruit
and vegetable processors (total may be more or less than
100% due to multiple answers or not response).
In respect to the types of end-market of these companies, 71% are involved in retail, 45% in food service/hospitality, and 42% in industrial/food ingredients (Fig. 3).
Figure 3

Fig. 3 Distribution of the types of end-market of Oregon fruit and vegetable processors (total may be more or less than 100% due to multiple answers or not response).
Position and Status of Oregon Fruit and Vegetable Industry
Berry Fruits - It cannot be emphasized more how important the berry industry is to the state of Oregon. Many of the best known berry packing firms in the U.S. are located in Oregon. Oregon grown berries include Red Raspberries, Black Raspberries, Marion Blackberries, Evergreen Blackberries, Boysenberries, and Loganberries. At one time, there were about 500 growers and 20 berry processors. However, the number of growers and processors has dropped significantly in the past years as a result of intense pricing competition and quality trade-offs, driven primarily by the consolidation among grocery chains and food processing companies. According to the Oregon Strawberry and Raspberry Commission, there remain only about 10 berry strawberry and raspberry processors in Oregon.
Oregon berries are mostly processed into value-added products, such as individually quick frozen (IQF) berries; straight or sugared frozen berries; canned berries; berry juices, purees, and concentrates. To help Oregon berry growers and processors, the Oregon Berry Commission has made major efforts to promote the health benefits of Northwest berries, primarily the antioxidant activities of berries, seeds, and seed oil.

Additional efforts that may help the industry include promoting fresh market berries, especially strawberry and raspberries; development of value-added product such as smoothie and nutritional bars, provide better quality products by applying new technologies, and establishing new markets.


Graphic provided courtesy of the
Oregon Berry Commission

A very informative website was developed by the Oregon Berry Commission for providing information about Oregon berries and their health benefits
http://www.oregon-berries.com/

Cherries - There are about 5,000~6,000 tons of cherries produced in the Oregon Willamette valley, and about 15 cherry growers and 15 processors. Oregon exports to many different countries including South Korea, China, Taiwan, India, Malaysia, Australia, however, there is a lack of flavor acceptance in Japan, thus very few are exported.
There is an over-supply of brined cherries. The economic situation of cherries that are destined for the single traditional maraschino cherry product is complicated. Processors need to diversity and develop new applications for brined cherries.
Immediate Needs of the
Cherry Industry

Organic Production and Processing

Nutritional Fortification

Flavor Ingredients

New Applications for Brined Cherry

New Consumer Survey to Identify Needs
(previous survey conducted 20 years ago)

Package Improvements to Add Value
Waste management is a challenge for the cherry processors as a result of the brined cherry process. The waste-treatment facility is very expensive, costing about $2~ 3 million for installation of equipment to separate sugars from inorganic components. Increased electricity (30% increase since Oct. 1, 2001) adds significant cost to processing. Efforts have been made to develop new products by modifying flavors, fortifying with nutrients, and packaging innovation.
In addition, a good understanding of consumers’ acceptance and need for cherry and cherry based products would help processors. An information survey would help industry develop strategies to attract more consumers. Companies are moving toward more natural ingredients in their products and fortifying with nutraceuticals as a means to provide healthy benefits to consumers. They are also open to the idea of producing organic products.



Processed Vegetables – The major processed vegetable crops in Oregon are green beans, carrots, broccoli, cauliflower, sweet corn, and table beans. Finished products are primarily frozen, canned, and microwavable mixed vegetables. The Oregon processed vegetable commission includes 8 growers and 3 processors. The commission provides funds to farmers for product oriented projects, and hosts an annual meeting for growers at the end of January.

Production of canned vegetables has dropped significantly. Global competition has become a big issue for Oregon vegetable processors: only less than 10% vegetables are exported because of a lack of marketing strategies and contacts.
Two major funded research projects are now on-going, one is genetic breeding technology for developing mechanically harvest broccoli cultivars, and the other is developing vegetables with increased nutritional value through breeding. Little has been done with organic production or processing at this time. A major challenge is global market competition. As a result of this competition, the price of green beans has been greatly reduced, and is $89~$110/ton this year.
History of Industry and University Relations
According to the industry survey, Oregon fruit and vegetable companies used university resources to a limited extent. Food companies basically used their own internal resources (>35%) or hired private consultants (~15 to 30% depending on specific areas) for product development, processing system and packaging design, market research, microbial safety/sanitation, and sensory testing (Fig. 5).

The most effective assistance food companies have received from the university was new product development (~21%) and microbial safety/sanitation and sensory tests (~13% for both).
Figure 5

Fig. 5 Resources used by the Oregon fruit and vegetable processors in different activity areas (total may be more or less than 100% due to multiple answers or not response).
When asking for how useful university research is to their company's needs over the past five years, 41% responded sometimes useful, and 34% indicated useful to extremely useful (Fig. 6).

Fig. 6 Usefulness of university research to meet fruit and vegetable processors’ needs over the past five years (total may be more or less than 100% due to multiple answers or not response).
Figure 6
The Need for Extension Education Activities
Figure 7
 One of the major goals of this effort was to identify the needs, interests, and expectations of the Oregon fruit and vegetable industry for future Extension education programs and university assistance. A question posed in the survey was to ask which of the Extension activities would companies most likely participate in to meet their needs. Among a list of Extension activities, workshops and short courses were the participants first choice.
Fig. 7. Extension/outreach activities that fruit and vegetable processors are most interested in seeing offered (total may be more or less than 100% due tomultiple answers or not response).

 Eighty-one percent of participants indicated that they are willing to participate in informative workshops and/or short courses. Other favorable Extension activities were one-on-one consultation (69%), newsletters (61%), Extension publications and bulletins (47%), and plant visits to provide help with solving specific problems (47%). Thirty-six percent of participants also selected Internet information exchange as a tool of Extension education    (Fig. 7).
Figure 8
A list of topics for the future workshops and/or short courses was given to the food processors, and asked about which topics would most meet their needs and interests. The first two choices were new value-added product development (68%) and new technologies in fruit/vegetable processing and preservation (63%). Forty-two percent participants were interested in the topics of functional foods and nutraceuticals, 39% in food packaging design, 37% in food export market, and 37% in food safety and HACCP training (Fig. 8).

Fig. 8. Workshop/short course topics viewed as needed to meet fruit and vegetable processors’ needs (total may be more or less than 100% due to multiple answers or not response).
  Food companies recognized the importance of training to establish an informed and competent work force. They are willing to utilize outside help when the skills are not inherent to their work force. The specific needs and concerns food companies have for training, consulting or other assistance were identified through this survey and summarized as:
  n Employee training, especially non-English speaker workforce in food safety and technical projects, training in high turnover employment operations
 
n
 Improve e-commerce positioning/internet sales
 
n
 Food safety issues, including:
 
;
 Identifying potential food safety pathogen problems
 
;
 Training HACCP instructors and sanitation personnel
 
;
 Training for correct food handling, good agricultural practices and good manufacturing practices
 
;
 Consulting and training
  n Improve packaging efficiency and develope new packaging technologies to replace traditional steel and glass closure
  n Value-added products made from cherries, plums, and apples
  n Process development
n Quality standards for vegetables
The Need for University Research Programs
  In general, the greatest need is to make the university research relevant to food plant processing/operations. The ability of food processors to utilize university research requires significant adaptation unless the research is done in conjunction with an industrial partner on a commercial level scale. Food companies commented that the University approach to training food technologists and scientists lacks a food manufacturing/processing perspective. Specifically potential job candidate lack an understanding of the realities of the manufacturing environment from a processing quality assurance or research and development perceptive. This contributes to the lack of confidence that manufacturing personnel have with technical departments. Some of the University food science courses should contain more practice training. New graduates are often disillusioned when the real world does not meet their expectations.

In addition, there are some special needs in respect to specific researchable questions:
 
n
 New technology in fruit processing and preservation, and value-added product development
   
;
 New technologies for fruit and vegetable puree pasteurization as an alternative process for aseptic packaging
   
;
 Improvement in fresh cherry fruit quality
   
;
 New applications of brined cherries
   
;
 Potentials for fresh, sliced pears
   
;
 Fruit dessert and quality
 
n
 Improved packaging design
   
;
 Convenience, low cost, and attractive to consumers
   
;
 Optimize product quality and movement
   
;
 Packaging line design that would work more efficiently
   
;
 Packaging to improve quality during product distribution/transportation
   
;
 Packaging materials for fresh produces
   
;
 Packaging innovation for frozen fruits and vegetables
   
;
 Biodegradable films to protect environment
 
n
 Understanding naturally occurring enzyme inactivation during fruits and vegetable processing, enzyme softening in fermented vegetables
 
n
 Better understanding about the health benefits of fruits, and preservation of phytonutrient during processing and storage
 
n
 Post harvest disease control
 
n
 Market issues
   
;
 New markets for Oregon berries and other fruit/vegetable crops
   
;
 Phytosanitary treatment to access export markets
;
 New markets for prune
How Can University Extension Help?
  This assessment study generated significant information for the future planning of Extension programs for assisting Oregon fruit and vegetable industry. Several activities that may help are summarized below:
 
n
 An Advisory Committee to Help Plan and Develop Extension Education Programs
      A Fruit and Vegetable Processing Advisory Committee partnering with the Department of Food Science and Technology has been formed. The committee members include fruit and vegetable processors, administrators from Oregon Department of Agriculture, commodity commissions, Department of Food Science & Technology, and food science research and Extension faculty. Our goal is to strengthen communication and working relationships between the Oregon fruit and vegetable processors and Oregon State University through the input of this committee. The committee will assist in developing content for short courses, workshops, and seminars, allowing us to address “hot” topics as well as provide newsletters and scientific updates, and help our faculty prioritize research activities.
 
n
 Provide the Most Effective Extension Programs and Services
      Through the knowledge obtained from the survey, workshops and short courses will be developed to address the most important issues for processors. Two workshops were organized and recently conducted to address emerge issues and meet the immediate needs of the fruit and vegetable industry. One workshop addressed FDA’s new rules in organic food production and processing, another focused on packaging innovation to add more values to fruit and vegetable products. Both workshops received very positive responses from the participants. Other workshops on enzyme functionality in fruit and vegetable processing, microbial safety in Northwest berry production and processing, and packaging design have also been scheduled.
 
n
 Increase Information Exchange
      This can be done through newsletters, Extension bulletins, and a dynamic website to update processors on the most recent government regulation, new technologies, and Extension services and activities.
 
n
 Increase Awareness of University Extension Service to the Public
      Many fruit and vegetable processors are not well aware of what is available to them from University cooperative Extension service. It is anticipated that better communications could provide processors information on topics to them in a timely fashion. An event we recently conducted was to invite growers and processors to the campus to visit research labs and service facilities, and introduce our faculty to them.
 
n
 Collaboration with Other Partners
  Collaboration with Extension county agents, commodity commissions, Oregon Department of Agriculture, Northwest Food Processors’ Association, and Food Innovation Center will be emphasized in our future programs.
Program Impact
  Understanding the features, interests and needs of Oregon fruit and vegetable industry is one of the initial program activities of the OSU Food Science and Technology fruit and vegetable Extension program. Survey generated information can assist in articulation of technical barriers and greatly benefit the research and outreach opportunities. The liaison with Oregon fruit and vegetable processors developed through this effort will lead to further cooperative initiatives between OSU food science and Oregon fruit and vegetable processors.

In summary, here are a few of the highlights gathered from this study:
 
n
 Organic food production. Many processors have explored organic processing techniques by using organic ingredients although most of them can’t label their products as organic foods at this stage. As commented by some processors, “there is always room for organic processing”. Processors are interested in knowing about organic production and processing, and believe there are may be a significant market in the future.
 
n
 Environmental energy issues. Processors are facing the challanges of increased energy costs and environmental protection. Outreach and education programs provide important ways to address these issues.
 
n
 Waste management. There are great needs for that, but costs are major concerns
 
n
 Health benefits of fruits and vegetables, especially Northwest berries. Understanding of their specific functionality, increasing public knowledge, and development of new products to increase consumers’ purchasing are important issues.
 
n
 Increase on export market. Although global competition is here to stay, there is still room for potential increases in market exports as a result of high quality and unique Oregon products. However, a better understanding of the international market is needed to develop specific strategies.
References
  ODA, 2000 Oregon Department of Agriculture Database
Acknowledgement
  We sincerely appreciate those who have responded to our surveys, and the Extension county agents and processors who hosted our visits and spent time with us for sharing and discussing various issues.