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Business snapshots: How the economy is faring in the Yakima Valley right now

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Sort through recent economic news in Yakima County, and it’s a mixed bag.

Last year was a tough one for cherries and apples, mainstay crops in Central Washington that are vital to the local economy. While the harvests were plentiful, the markets and prices weren’t. Growers are hoping for a better season this year, albeit with a drought and irrigation water cutbacks looming.

Previously announced layoffs involve the closure of Del Monte Foods’ Toppenish facility, Roy Farms in Moxee and Skagit Horticulture in Mabton. New Columbia Fruit Packers, formerly Frosty Packing, will close its plant in Yakima in August, with 200 workers losing jobs.

On the positive side, Manzana Products is opening a new apple processing facility in Sunnyside that will employ 150 workers. Amazon plans to open a “last-mile” delivery facility on Keys Road in Yakima.

The unemployment rate was 6.3% in April 2024 in Yakima County, up from 5.3% in April 2023, according to the latest available statistics from the state Employment Security Department.

More from the department’s monthly report:

• Construction employment in Yakima County has either stagnated or decreased, year over year, for the past six months, with high interest rates a likely factor.

• Private health care and social assistance jobs in Yakima County have been increasing year over year for 28 consecutive months.

• Agricultural employment peaked in Yakima County in 2018 at 32,320 jobs and tapered off yearly to 29,091 jobs in 2022. The report said anecdotal evidence points to automation, gradual conversion of some season agricultural jobs to year-round positions and the increased use of H-2A foreign labor could be factors in the change.

• Yakima County’s nonfarm job market added 1,300 jobs between 2022 and 2023, an increase of 1.5%.

While the numbers tell part of the story, each small business in the community has its own set of challenges and highlights. Here are a few snapshots from local business people:

Difficulties for agriculture

From his Yakima office window, Ricky Adams has a view of the Upper Valley and the Yakima Ridge. Adams is a banker for Umpqua Bank who largely works with agricultural clients, and closely watches the industry.

He grew up in Prosser and is a graduate of Washington State University with a degree in agricultural economy. He lives in Selah with his family.

“The general state of the economy right now is not great – and I think that almost anybody would tell you that,” Adams said.

Wine grapes, tree fruit, and hops — the biggest products grown in the Yakima Valley — have all been facing market difficulties from the 2023 harvest year, Adams said.

“This is the first time in my career I can remember so many commodities being down at the same time,” he reflected. “In general, growers are facing a loss on every bin they produce.”

His thoughts here are his own, not necessarily of his bank, and he is speaking generally.

Adams gave several reasons for falling market prices. Bad years are a part of the cyclical nature of the industry, but as a whole, growers produced more in the 2023 harvest season than the market demanded.

“There is an oversupply of apples for the domestic market,” Adams said.

In other words, either Americans aren’t eating enough, or growers are growing too much. The 2023 apple harvest in Washington was the second highest on record, he said. A lot of new orchards have cropped up in the last five to 10 years, and they are just now getting into full production. And growers are better at growing fruit. Mother Nature still plays a hand, and she was kind last year.

As for hops and grapes, consumers’ tastes are changing, Adams said. Consumption of hard seltzer and hard liquor, especially bourbon, tequila, and mezcal, have grown significantly in recent years, and that is cutting into the wine and beer market, he said.

Another hit to wine grapes is that Chateau Ste. Michelle, the largest winemaker in the state, significantly lowered the number of acres it contracts with for grapes.

The hops industry began reducing acreage in the past few years, Adams said, which helped prices, but he thinks more reductions will be needed.

Another factor across agriculture is that labor costs continue to rise.

Despite an array of challenges, there are a few bright spots in the agriculture industry right now. The cherry season appears to be going well, a reprieve after a difficult year.

Propriety varieties of fruit like the Envy apple have a controlled supply, which keeps prices higher. Some growers have added these kinds of fruit to their mix. Juice grapes and fresh pears have been doing well pricewise. Adams believes that growers ought to shift more production to higher quality, higher priced fruit.

Another is that growers’ land value has skyrocketed in the last decade, affording growers new economic opportunities — though recently, those land prices have started to dip.

International exports can act as a “relief valve” to make up for the oversupply in the domestic market, mainly to Canada and Mexico. The Mexican economy is growing, and the country is beginning to buy more of our fruit and at higher prices, he said.

“We would love for the American consumer to eat more apples,” he said. 

Questen Inghram

RV sales 

During the COVID-19 pandemic, Todd Munson saw an uptick in sales at Canopy Country in Union Gap.

At the time, people were flush with COVID stimulus money and had limited options for travel, so they went for the next best thing — recreational vehicles and campers.

Fast forward four years and things are a little different. Money’s tight, interest rates are up and RVs are not exactly at the top of people’s shopping lists.

“We’re treading water,” Munson said. “We’re getting moderate traffic and interest in recreational vehicles.”

Canopy Country has been selling motor homes, travel trailers, truck campers and truck canopies since 1974.

While COVID saw a surge in people buying RVs to get away, he said people are being more judicious in their purchases.

“We’re discretionary, and interest rates have had an impact on people’s money to buy toys,” Munson said. “We’re still selling RVs, but the price point and size of the RVs has gone down.”

He said people are going for the bunkhouse-style trailers, which are ideal for families. It also helps, Munson said, that Yakima County is close to great camping locations and a national park.

Munson is hopeful that the Valley’s agricultural sector will inject cash into the local economy, with the cherry harvest, which has started, appearing to be good.

The stock market is doing well, Munson said, and he’s hoping that, regardless of who wins, that the 2024 election results will bring back some stability.

Donald W. Meyers

A taco business on North First Street

As goes the weather, so go the customers at Tacos Los Primos.

Alejandro Rodriguez owns the North First Street taco truck. Many of his customers are farmworkers, especially seasonal laborers who are in town for harvests or other agricultural work.

Rodriguez said he sees business fluctuate as temperatures fluctuate, and that means this year has been a bit of a roller coaster.

Rodriguez used to park outside Lost Sock Laundromat on North First Street. In September 2023, he moved almost a mile north 1309 N. First St. When he first moved, things were slow because people couldn’t find him, he said. But things are slowly picking up again, especially as workers filter back in for the summer harvests.

“Right now, at this moment, more people are finding me,” he said in Spanish. “Gracias a dios que regresan.” Thank god they’re coming back.

His new location does have benefits. Rodriguez has indoor space for people to eat during harsh weather. He also hosts events, like birthdays and quinceañeras. That income helped him get through the slowest parts of the winter, he added.

He still sees challenges on the horizon. In the economy more broadly, high food and supply prices are hitting hard. He’s tried to keep his prices stable but it’s just not easy.

“It’s very difficult,” Rodriguez said in Spanish, “Prices of the products I use are high, it’s difficult for me to sell a taco for three dollars and it’s very difficult because people don’t want to buy it.”

Locally, he added, concerns about homelessness on North First Street can also have an effect. Rodriguez has loyal customers. Construction on the street hasn’t affected his business for that reason, he said.

It’s rare, and often more imagined than real, but sometimes customers are harassed by passers by on North First Street. It’s the economy on this end of the street, Rodriguez said, and it slows business a little.

If things changed, he said, more people would probably come.

Still, he’s hopeful that things will improve. He expects them to as more people learn about his move and his old customers come back. Rodriguez has worked in the restaurant industry for almost two decades, including time running Italian restaurants in Yakima.

He enjoys working at a taco truck the most, though. He’s got a popular and deep menu.

“Cuando llega gente aqui, vende todo las cosas,” Rodriguez said: When people come here, there’s nothing they won’t buy.

Jasper Kenzo Sundeen

Baking bread, and trying to find workers

The farmers market season is the busiest time of year for the Buhrmaster Baking Co. in Zillah. On Friday, Saturday and Sunday from May to October, owner Larry Burmaster and his crew will cover markets in Richland, Roslyn, Yakima, Pasco and Ellensburg. Burmaster is also trying to get set up at a couple other farmers markets, he said.

Year-round, the bakery’s work doesn’t slow down much, though. Bakery products are sold through other outlets and Buhrmaster Baking Co. also has occasional pop-ups throughout the year, along with its regular hours at the Zillah location. It’s open from 8 a.m. to 4 p.m. Monday through Friday at 1002 Vintage Valley Parkway.

All that takes a lot of work and a lot of people.

In late May, the bakery had several positions open from baking to packaging to delivery/farmers market people. Burmaster posted information about the openings and how to apply on the bakery’s Facebook page. Since then he’s hired a few people, but could use three more, he said.

Hiring is always a challenge, and that hasn’t changed despite rising unemployment in Yakima County. Burmaster pays at the top end of his positions, he said, and hopes that helps. But “there’s needing people and there’s (finding) people” willing to do the work, he noted.

This farmers market season is looking good so far, Burmaster said. That surprises him in light of persistent inflation and other economic challenges

“I really expected a big downturn from the markets — I really expected farmers markets to take a hit, but we’ve done really well,” he added. “The markets are a huge part of our business. Seeing that hold up” is great, he said.

Buhrmaster Baking Co. adds a new product or two for farmers markets every year. This year it’s pesto rolls and pizza rolls, Burmaster said. Traditionally a bread shop, the bakery has added a few pastries over time as well and they’re popular.

Overall, “I’m doing fairly well. A couple others are doing well. Everybody’s having to work harder to make it happen. We have to pay closer attention to the bottom line,” he said.

Inflation and high fuel costs are his biggest worries. Inflation has impacted not only his food product ingredients but also his packaging and other materials. And he runs three trucks a day, which means there’s no getting around higher fuel costs.

Though inflation has moderated a little bit, “I’m still kind of nervous,” Burmaster said. “I really think this inflation thing is going to come back and raise its ugly head.

“Everybody’s carrying the burden. I don’t see any relief from inflation” anytime soon, he added.

Tammy Ayer

A new-ish business

Geetaku Market in Yakima is an anime gift shop and drink bar. The market features drinks like flavored Red Bulls and smoothies with names and ingredients inspired by and referencing anime characters. The gifts available range from books, DVDs, plushies, accessories and snack food from Japan.

Geetaku Market celebrated its first anniversary at 2301 W. Nob Hill Blvd. on June 8, and owners Alvaro and Isidra Mignone strive to keep customers happy with a small, rotating inventory based off what their likes and interests are.

Mignone says their customers come in for drinks, snacks, free video games and merchandise.

“Every week I try to have something different,” Mignone said. “I like a lot of interaction with the customers, so that people usually just don’t come here and buy and leave. We’re doing something different and create a small community.”

Mignone recognizes economic times are challenging for businesses, pointing out how it’s troubling to have to worry about people losing their jobs, or in Geetaku Market’s case, not being able to hire employees.

“People come in asking if we’re hiring but for now, it’s just me and my wife,” Mignone said. “If we had an employee, I’m not gonna be able to bring new stuff every week, because I have to take care of a salary and needs. It’s difficult time for everybody and right now we need to focus on our place because not a lot of people know about this place.”

Geetaku Market’s mascot is Geetaku the fox, found in many of the market’s imagery and Instagram (www.instagram.com/geetaku_market) posts.

Mignone acknowledges he struggles trying to figure out what customers are going to buy versus what they like. A like doesn’t always generate a sell, Mignone said. For now, Geetaku Market is working on delivering the best customer experience they possibly can.

“We need to stay positive,” Mignone said. “Either way, things are gonna happen, good or bad. We have no control except for having a backup plan, some money in the bank. There’s no guarantee we’ll stay open, but people need to come. Stay positive, that’s the best we can do.”

Sara Rae Shields

Joy in gardening

Cowiche Creek Nursery was established in 1989 and offers a variety of plants, baskets and containers, garden décor, soils, mulches, fertilizers, plant care, pumpkins and fall décor, garden consultation and u-pick blueberries. It’s a seasonal business – summer plant sales will end June 29 on Cowiche Mill Road. U-pick blueberries will start July 5 and run through mid-August at 500 Dahl Road. The nursery is open on weekends in the fall.

“Our business is very dependent on weather, and maybe at times even more so than the economy,” said Serena Gillespie, one of the managers. “But I’ve noticed this year it does seem like people are maybe more conscious of how much they’re spending overall.”

Gillespie points out that people still want to splurge on their homes, yards and gardens. She hasn’t noticed cutbacks to a point where it’s affecting their business but acknowledges that people are being a little more conservative on how they’re spending money. Gillespie points out that she believes the amount of money spent by a family on gardening is also affected by time constraints.

During the COVID pandemic closures, Cowiche Creek Nursery saw a boost in sales and new customers wanting to try something new. Post COVID, Gillespie believes people are back to doing activities because they were denied them for so long.

“A lot of our great customers are definitely still planting some of the same things,” Gillespie said. “And also switching over to perennials because that’s something everyone’s kind of going towards, making sure things are permanent.”

One of Cowiche Creek Nursery’s goals is to get people out in their yards to promote relaxation by gardening. The home and yard can feel like an oasis and a vacation and Gillespie says creating those atmospheres can be rewarding and bring a lot of joy.

“Gardening is a sense of accomplishment,” Gillispie said. “It just feels good to have physically worked on (it). It’s like a little inner farmer in us all, wanting to grow and create something and make something beautiful that’s surrounding us.”

Since Cowiche Creek Nursey isn’t open year-round, Gillespie says their customers are always a bright spot, regardless of the valley’s economic standing.

“Every year, it’s the joy that we see in our customers when they get to come out and play,” Gillespie said. “We hear people say that the drive out here just calms them. They just get a lot of joy out of walking through and picking out the plants, we love getting to visit with people and help them. It’s a gardening community.”

Sara Rae Shields

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