With the Colorado peach harvest underway, shoppers are already seeing locally grown fruit in stores, at farmers market standsand on restaurant menus.
This year, locals may also notice price increases.
Producers on the Western Slope say they’ve raised prices to help offset increases in operating costs, such as labor and fertilizer. Talbott Farms in Palisade, for example, upped peach prices by 7% this season, said partner Charlie Talbott.
It’s the first time in several years that the company has instituted an increase and it wasn’t an easy decision.“It’s a judgment call every year,” Talbott said. “We do a little agonizing, a little soul searching, and put some feelers out… and try to find that compromise that still enables attractive pricing for consumers and yet allows farmers to survive.”
Also factored into the equation this season: spring hail storms that damaged some of Talbott’s orchards. He hopes to be able to harvest about 75% of his total crop.
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In Hotchkiss, fourth-generation farmer Steve Ela said his harvest runs about a week behind Palisade since the town is slightly higher in elevation. Because of that, the crops at Ela Family Farms were less affected by the weather. However, increased expenses from labor to packaging dictated a price hike in 2023.
Ela Family Farms currently sells all its produce, including peaches, for $5 per pound along the Front Range. A box is typically 20 pounds, Ela said, so those who purchase one get a slight discount at $90.
Rancho Durazno in Palisade also sells its peaches for $5 per pound but offers a steeper discount on 20-pound boxes, at $60 each, said farmer/owner Gwen Cameron. She’s upped wholesale prices for grocery stores and restaurants by about 4.5% over the last three years.
That may sound pricey, but all three farmers insist it’s fair relative to the cost of doing business. Peach growing and harvesting is a labor-intensive process, and much of it is done by hand because the fruit is so delicate. In addition to incremental increases in the minimum wage for migrant farm workers, known as the Adverse Effect Wage Rate, Colorado recently passed a bill mandating overtime pay for agricultural workers that’s drastically increased farmers’ costs, Cameron said.
“It is very expensive to hire H-2A (visa) workers for that reason, but also because we provide housing, we provide transportation from their home countries, so a lot more than just that wage,” she said.
Ela estimates the cost of labor comprises about 70% of his business expenses, but it’s not the only thing impacting his bottom line.
“Box prices, like the box to put them in, have gone up. Our fertilizer costs have doubled in the last four years. So it’s not inflation of 10%, it’s like double,” Ela said. “We’ve gotta make that up somehow.”
Of course, prices will vary depending on where customers shop, and farmers have deals that can save customers a couple bucks. Ela, for example, sells his “imperfects” for $2.50 per pound. Talbott also offers a discount on fruits that are not in pristine condition and on those he calls “canners” that are either extra ripe or have some bruising.
Cameron said peaches may be cheaper at grocery stores since they are often leveraged as loss leaders. That means retailers slash the price to entice shoppers into the store where they buy discounted hot ticket items as well as other more expensive products.
Ultimately, Colorado farmers hope residents will buy local peaches throughout peak season in August so the state’s agriculture community can sustain and thrive for many to come.
“This high elevation desert climate gives us an opportunity to flavor a peach that can hardly be replicated anywhere else,” Talbott said. “Because we can put out an exceptionally flavored peach reliably year after year after year, we’ve gained a loyal following for the Western Colorado peaches and we always want to deliver on that promise.”
Originally Published: July 24, 2024 at 6:00 a.m.
