Commercial chestnut production in the U.S. could be greatly expanded, displacing our 12 million per year importation, as well as exploiting new markets. Chestnuts are a highvalue, low-input crop, well adapted to many U.S. growing conditions. Prerequisites for competing in the U.S. and world market are mechanization of harvesting and handling operations while maintaining high quality of this perishable crop. In Phase I, we found that successful shake-harvesting is limited to "easy shaking" clones and no more that a 3-4 day harvest window. Also, we found that sugar content of chestnuts ranged from 5-25%, depending on storage conditions. For Phase II, we will explore mechanical pick-up harvesting and develop machinery to thrash (remove burs) and peel (remove shells) chestnuts. Also, we will further explore the effects of storage on sugar formation and study postharvest molding, including mycotoxin risks. A major goal is to develop knowledge and technology for production of high quality peeled chestnuts, which will greatly increase marketing and processing options. Also, we will develop grading standards for chestnuts which may form the basis for USDA grades (none presently exist).Applications:With proper storage and handling technology, we will be able to pursue our Phase III goal of developing and marketing high quality peeled chestnut products. Such products will provide a market for small-sized chestnuts which are already locally produced, but arc not easily marketed. The results of this research will be applicable in all regions of the country, including the Pacific Northwest and fruit-growing region of Michigan, both of which are beginning to expand chestnut production.