We expect the demand for fresh apples to remain strong, which means our raw product supply will continue to be smaller. When the crop is abundant, we produce a lot of concentrate. But concentrate doesn’t offer a high contribution margin. So, we’re focusing on those items that do provide a higher margin, and are changing our production and sales plans accordingly. We’re identifying cost reduction opportunities company-wide. We’re studying long-term capacity needs. We’re actively marketing our custom pack capabilities to other food and beverage manufacturers. And, this change in worldwide supply should bring opportunities for price adjustments that will be more in alignment with Tree Top’s product value.

Product development activity is at an unprecedented level. We have a team in place, working on new product development and line extensions. Our products are in high demand, with a number of large companies seeking us out for new item development to ensure they produce healthful products, and can promote full or multiple fruit servings in their items. Northwest Naturals continues to be a stellar performer, with strong sales growth, and expanding development capabilities as well.

Tree Top enjoys the continued support of you, our grower-owners. We have developed a good business base, strong customer relationships, and a good product mix. Tree Top is a trusted brand. While we anticipate another challenging year, we believe your cooperative is in a strong position to meet those challenges.