The U.S. Department of Agriculture is expected to reduce the surplus of cranberries in Wisconsin and other states by purchasing $18-million for food assistance programs.
Growers of the tart fruit saw record harvests in recent years, which led to too much supply and not enough demand. Farmers saw low market prices, and companies accumulated surplus inventories.
At the cranberry industry's request, the U.S.D.A. is investing $18 million nationwide, with most of the money expected to be spent in Wisconsin because of its high market share.
Tom Lochner, executive director of the Wisconsin State Cranberry Growers Association, says they hope the federal purchase and other efforts in the industry will reduce cranberry inventories and not make the situation worse for growers. He says another factor working against the cranberry industry is that during tough economic times, people tend to view cranberries as a luxury item and sales decline.
The cranberry products the U.S.D.A. plans to purchase are slated for federal food and nutrition assistance programs. Lochner says the U.S.D.A. has helped the cranberry industry in years past, but it's been awhile since he's seen this large of a purchase.
Wisconsin produces up to 60-percent of the nation's cranberry crop.
Name：