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April 2004, World Apple Report Highlights

The Resurrection of the Reds: Is it for Real?
This article examines the recent rebound in prices of Red Delicious apples in North America and Europe and investigates whether this implies that demand for Red Delicious has reversed course. Unfortunately, the price recovery is less than one would expect given smaller total apple crops and the much larger decline in volume of Red Delicious apples. When the total apple crop rebounds, further reduction in Red Delicious volume may be necessary to assure prices remain above breakeven.

The Economics of Super Sizing
Partly in response to critics that charge it with contributing to an epidemic of obesity, McDonald's, the world's largest fast food chain, has announced that it is phasing out the largest (super) sizes of servings of french fries and soft drinks that it now offers. However, clearly, in the past, super sizes contributed to McDonald's appeal to customers and its profits. This appeal and these profits will have to be made up elsewhere in the chain's product mix, either by higher prices to consumers or lower prices to suppliers. Since the former could lessen the chain's appeal, cuts in super sizes may translate into cuts in supplier prices.

Avoiding Drowning in the Health Whirlpool
This article argues that most consumers are by now utterly confused by the flood of claims and counterclaims about the healthfulness, or lack thereof, of different foods. For the apple industry to better communicate the benefits of its products, it needs better base information on what consumers currently know and believe about healthy food and on what messages and communications media are likely to be most effective in telling the apple story.

Special Statistics
U.S.: Average Grower Prices of Fresh Apples, September-January period, 1999-2004 (chart).
Mexico: Wholesale Prices of Red Delicious Apples, Domestic and Imported, 2000-01, 2001-02 and 2003-03 chart).
EU-U.S. Fruit Trade, 2002 (chart)

The authoritative guide to the world apple business today.

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