Stemilt has all-organic peaches, nectarines

After a three-year wait, one of the Pacific Northwest's largest fruit growers has had 100 percent of its peach and nectarine crops certified as organic.

Stemilt Growers Inc. is a smaller, niche player in the soft fruit industry compared to California growers, which dominate U.S. organic soft fruit production. But Stemilt produces about 65 percent of Washington state's soft fruit, much of it now certified as organic.

Stemilt produces 26 percent of organic apples in Washington, which is the nation's leading supplier of apples, and 32 percent of the organic pears grown in the Northwest.

"The main emphasis on the fruit is pushing flavor - naturally farmed for ultimate flavor," said Roger Pepperl, Stemilt director of marketing.

More growers are converting orchards to organic crops to meet consumers' increasing demand for healthier food.

To be certified organic by the U.S. Department of Agriculture, growers must raise their crop free of bug killer or fertilizer for three years. Agricultural experts estimate the costs for growers at as much as 30 percent higher during the transition, and growers rarely get a higher return for the fruit during that time.

Two years ago, Stemilt created a new marketing campaign known as "Artisan Naturals" to market its peaches and nectarines. The fruits were being grown organically, but had not yet been certified, so the almost-but-not-quite label allowed Stemilt to capitalize with higher prices.

"With soft fruit, there have been struggles on the retail side, bad customer experiences made for a national retail problem," Pepperl said. "We thought we had a silver bullet there that we should put out right away."

Peaches and nectarines will now be sold under the "Artisan Organic" label.

In addition, about 40 percent of the company's apricots are organic.

Washington leads the nation in organic apple, pear and cherry acreage, primarily in the central, irrigated regions of the state.

Certified acres of organic apples and cherries increased by more than 60 percent in 2008, according to a recent study by David Granatstein, sustainable agriculture specialist with the Washington State University Extension in Wenatchee.

Organic apple and pear acreage may increase 33 percent and 26 percent by 2010, and cherry growth may increase 46 percent in the same timeframe, the report said.

Stemilt is one of the nation's largest providers of apples. Only about 12 percent to 15 percent of the company's crop will be organic this year, but Pepperl said that is expected to increase.

However, apples grown in orchards that are in transition to being certified organic are not sold under the transition label created for soft fruit.

"They really don't have a market, because there are so many organic apples out there," he said. "Consumers will just go ahead and buy those organics."