The tree fruit industry in Kings County is expected to take a big dive this year, losing almost 16 percent of its total production amid falling prices and a tough market. Peaches, plums and nectarines were worth $80 million in 2007. The decline is largely caused by a shift last year away from varieties that weren't selling.

That means many local tree fruit growers have been ripping out orchards that weren't producing the in-demand fruit.

John Diepersloot, a Laton grower, said he pulled out 50 acres of peaches and plums that weren't earning money.

"It's market driven. They didn't pay me for that fruit," he said.

The relentless pressure has driven some of the smaller and mid-sized guys out of business, according to Jim Montross, field manager for Clovis-based Wawona Frozen Foods and a Kingsburg grower.

"The strong marketers are also the guys that are growing the good high-quality stuff," Montross said.

The depressed economy has left farmers with little room for error. Already-thin margins are getting thinner as retailers lower prices to attract consumers.

"We are luxury items at the retail level, and if people are going to buy us, they've got to spend a little extra money verses staple foods," said Gary Van Sickle, director of research for Reedley-based California Tree Fruit Agreement.

Sickle called last years market "disastrous" and said it is largely responsible for the amount of trees growers have pulled out.

"If you're not farming a real strong block in its prime, you're not making a lot of money," Montross said.

Prices haven't kept pace with costs, leaving only the growers that are "very, very good at what they do," Montross said.

The situation wasn't helped by frost damage in early March that damaged trees and is expected to decrease yields.

Diepersloot said it may cut yield in some of his orchards by 25 percent.

But given low demand and low prices, that might not be a bad thing for him and other area growers.

"Essentially, it did a lot of thinning for us. We have a little less fruit, which helps the market out," Diepersloot said.

The reporter can be reached at 583-2432.

(May 6, 2009)