Just Keep Growing: Inside the Country's Largest Tart Cherry Operation

A look at the challenges and opportunities facing the cherry industry

By Hanna Lee-Kleb | June 29, 2024

The story of the Shoreline Fruit cooperative began in the late 1960s, during casual gatherings at Michigan State University’s FarmHouse Fraternity. It was here that two sets of brothers—Bob and Don Gregory and Dean, Gene, and Norm Veliquette—planted the seeds of what would become the largest tart cherry operation in North America.

A few leased acres has grown into an expansive cooperative of growers, and today, the Williamsburg-based cooperative’s 6,000 acres of orchards typically harvest around 50 million pounds of Montmorency tart cherries. The Gregory family manages Cherry Bay Orchards and Gregory Brothers Farms, while the Veliquette family businesses are Cherry Ke and Cherries R Us. Among the first in northern Michigan to earn USDA Good Agricultural Practices certification, Shoreline Fruit growers also set a high standard for sustainable farming.

“I love working with my family and being responsible for something that has a long history. It’s deeply satisfying to work with the land, to steward it, and to pass it on to the next generation,” says Nels Veliquette, chief financial officer at Cherries R Us.

But the growing process isn’t always sweet, even here in the Cherry Capital of the World. International competition, labor shortages, and shifting weather patterns keep growers on their toes. On the bright side, new collaborations and technology—including TikTok—can help offset the challenges farmers face.

Supply and Demand

In the early 1990s, the tart cherry industry faced significant economic challenges. Prices for growers hovered around a mere five cents per pound, a figure that was unsustainable for long-term viability. In response, the industry established a Federal Marketing Order (FMO), which allowed certain producers to work together to manage supply, stabilize pricing, and pool resources for marketing efforts. This initiative, overseen by a board of growers and processors, aimed to create a more sustainable and profitable market for tart cherries.

The FMO’s dual approach of supply control and marketing has been instrumental in stabilizing prices and promoting tart cherry consumption in the United States. “The federal marketing order, the FMO, works really well,” Nels says.

One unique aspect of tart cherry production under the FMO is the ability to control supply. This has led to dramatic scenes where surplus cherries are sometimes dumped on the side of the road, a practice that has drawn public scrutiny. However, as Nels clarifies, “The government has never, ever, and cannot make anyone dump cherries.”

Instead, the decision to manage surplus cherries, whether by dumping them or placing them in reserves, is made collectively by growers and processors. The reserves can be utilized in the event of a crop failure or to support new product development.

While the supply control aspect of the FMO garners attention, the marketing efforts funded by the FMO have proven equally vital. Over the past 30 years, these marketing efforts have successfully increased consumption of tart cherries.

“Americans eat more tart cherries, consume more tart cherries than ever,” Nels says, attributing this success to the effective use of marketing funds collected through a small assessment on growers.

However, the tart cherry industry still faces challenges in the form of international competition. In the early 2000s, a significant crop failure led to an influx of cherries from Poland and Turkey to meet market demands. This shift highlighted a critical vulnerability in the U.S. tart cherry market: the lack of restrictions on imports.

“The imports came in to fill a niche,” Nels says, but explains that over time, importers realized they could profit from the U.S. market, particularly as production costs in countries like Turkey are lower due to government subsidies.

The foreign competitors may never go away, so Nels believes integrating international producers into the FMO marketing efforts could be a game-changer. “If we could get everyone, including importers, to participate in the marketing assessment, it would significantly boost our budget and benefit all producers,” he suggests.

Fights on Multiple Fronts

Pest and disease management is another constant battle for cherry farmers. The spotted wing drosophila (SWD), a fruit fly from Asia, poses a significant threat.

“Milder winters have increased pest and fungal pressures,” Nels says. “Our weather is becoming milder, and we don’t have as much snow, which impacts our crops.” These changes have made it imperative for Shoreline Fruit to adopt more robust pest management strategies.

Variable weather patterns—like late-spring frosts, scorching weeks in early summer, and heavy rain events—have also led to more frequent crop failures. Recently, 2020 and 2021 saw many area farms reeling from losing up to 90 percent of their crops.

“There’s no doubt that our weather is more unpredictable now, and we see more frequent short crops,” Nels says. “It’s a constant challenge to adapt to these changes.”

Labor shortages have also significantly impacted the cherry industry. The H-2A temporary visa program for agricultural workers from Mexico has been a lifeline, allowing the orchards to operate efficiently during the harvest season.

“We run six crews, harvesting 24/7,” Nels says. “The last local crew we had was in 2019. It’s impossible to hire enough labor locally, and finding housing for our workers is a constant challenge.”

And then there’s the shifting target of the fruit itself. While tart cherries are the bread and butter of Shoreline Fruit, the farms produce a variety of cherries, including tart cherries for pies and dried products, blush cherries for maraschinos, and dark sweet cherries for fresh consumption and yogurt production.

“We’ve had to adapt to changing consumer preferences and market demands,” explains Nels. He says that over the past 10-20 years, there have been significant changes in the types of cherries grown and the methods used to ensure they remain competitive.

Growing Something New

Innovation is key to overcoming these roadblocks, and Nels says farmers would love to explore more precision agriculture technologies, such as drones for monitoring and pesticide application.

“The promise of precision agriculture and technology is exciting,” he says. “We’re always looking into autonomous mowers and other innovations that could revolutionize our operations.”

The orchard is also experimenting with new crop varieties and products to stay ahead in the market. This diversification helps mitigate risks and ensures a steady income stream, especially when cherry production faces new hurdles.

Another unexpected boon came from social media earlier this year. A recent viral trend on TikTok, the “Sleepy Girl Mocktail,” has boosted sales of tart cherry juice, showcasing the power of modern marketing.

“We’re making as much cherry juice as we can as fast as we can,” in response to the trend, Nels says. (You may have even seen a little #sleepygirlmocktail tag on a Cherry Bay Orchards bottle of juice at your local grocer, with a QR code to scan and get a recipe. The original includes cherry juice, magnesium powder, and soda.)

At the end of the day, Nels believes that the future of cherry farming lies in leveraging technology, collaborative efforts, and growing the best possible fruit. “We have a great product with unique benefits. People love it when they discover it, and with continued effort, we can ensure that more people do.”