2013 Kentucky BLUEBERRY GROWERS SEASON UPDATE

1. 2013 Kentucky BLUEBERRY GROWERSSEASON UPDATE

2. 2012 Blueberry Sales • In 2012 the KBGA marketed 4,000 pounds to the Kentucky Public Schools for $14,000 ($3.50 per lb) (no fees were charged)

3. 2013 Blueberry Sales • In 2013 the KBGA marketed 23,720 pounds to the Kentucky Public Schools for $94,880 ($4.00 per lb) • Also, in 2013 we sold appx 6,000 pounds at $4.00 per pound from the store in Edmonton, KY for $24,000 2013 KBGA - KY Proud Blueberry Sales = $118,880 (5% market fee was charged)

4. KBGA Paid MEMBERSas follows: KBGA wrote 34 checks to members in June = $11,315 KBGA wrote 8 checks to members in July = $9,014 KBGA wrote 12 checks to members in Aug = $36,687 KBGA wrote 8checks to members in Sept = $25,204 Schools paid farmers direct = $23,280 (These farmers paid their 5% marketing fee) Total paid to Farmers = $105,500 (There is some discrepancy due to different purchasing agreements)

5. 2013 MARKETING OPTIONS • KBGA paid some members $3.00 per pound for blueberries in bulk delivered in lugs (provided sorting, packaging and delivery) • KBGA paid most of our members $4.00 per pound minus 5% marketing fee = $3.80 for blueberries delivered packaged and ready to market (provided delivery) • KBGA set up the sale and the member delivered themselves

6. Expenses • Lease • Electric • Water • Phones • Labor • Packaging • Delivery – Paid a $1per mile for delivery + labor • Sales • 5% doesn’t cover the expenses

7. 2014 Marketing Agreement • The KBGA is working on a new Marketing Agreement for the 2014 season. The agreement will be designed to clearly lay out the responsibilities of both the Association and the members.

8. Quality CONTROL Issues • Wet blueberries • Condensation in the bags • Poorly Sorted blueberries • Weight problems • Soft, Cull blueberries • Fruit fly larvae • Returned Blueberries

9. Cull found in 10 lb BOX

10. CULL – 94 in 10 pounds

11. We need to improve quality • The KBGA expects all farms to have some form of Integrated Pest Management in place. • Either Conventional or Organic • GAP – Good Agricultural Practices • Increase inspections on intake • KBGA would like to move towards blueberries being delivered in bulk so that we can sort, wash, dry, and flash freeze to ensure quality

12. New Equipment In 2013 New Walk-in Cooler New Walk-in Freezer 2 Blast Freezer Cleaning Belt Freezer Blankets Stove In 2014 Cleaning Belt Air bed Dryer Booth Washer Stand Mixer Dish Washer for Lugs Stove

13. Walk-in cooler & Freezer

14. Blast freezers

15. Improving Quality • Blueberry Dryer

16. New Sorting Belt

17. NEW Sorting BELT

18. Booth washer

19. Air bed dryer

20. Stand Mixer

21. Parts

22. DIShwasher for lugs

23. Dish washer parts

24. Stove

25. US High-bush Blueberry council • Blueberry Tax • $12 per ton • Next year increases to $18 per ton • Applies to a farmer that produces more than 2000 pounds per year • KBGA is expected to collect it as a first handler • www.blueberry.org/‎

26. Certified Facility KBGA is now a FDA Certified Facility With the warehouse and the kitchen approved for processing

27. University of Kentucky Blueberry value-added Development Project • KBGA has been working with Dr. Tim Woods and the Food Systems Innovation Center to develop recipes for value-added products. • The project is designed to maintain a high price for Kentucky Proud blueberries

28. KBGA would like to make the Certified Kitchen and Facility available for community and member use • Diversification Other Fruit & Vegetable High Tunnel KBGA is looking for ways to make the facility useful throughout the year.

31. Questions?Comments?IDEAS?