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April 2005, World Apple Report Highlights

Apple Marketer's Nightmare
An apple marketer's nightmare has two elements, falling prices at the same time that inventories are backing up. This nightmare has become a reality for marketers in Washington State. A similar situation hit the New Zealand apple industry in 2004. While one can blame many incidental factors for these nightmares, the essential problem is that more product is being supplied than the market is willing to absorb at breakeven prices. The article discusses controversial and often painful ways in which industry profitability can be restored.

Cracks in Mega-Retailing
Three or four years ago most pundits were forecasting that four mega-retail chains would increasingly dominate the world food distribution system, Wal-Mart (U.S.), Carrefour (France), Ahold (the Netherlands) and Tesco (U.K.). That belief drove consolidation and many other changes in the supply chain. However, the first three have run into serious setbacks in the last year. Many competitors have regrouped and are making inroads through discounting, limited assortments, gourmet offerings, etc. It is way too early to declare that the mega-retailers have won the battle for the favor of increasingly fickle consumers.

Who's Afraid of Kyoto Wolf?
The Kyoto Treaty to curb global warming came into effect in February 2005. Signatories to the treaty agreed to reduce carbon dioxide emissions by 5.2 percent below the 1990 level between 2008 and 2012. Many countries are now realizing how much of a strain that effort will be on their industry and agriculture, especially if their emissions have since ballooned above the 1990 levels. Any firms that use energy in their operations are likely to be targets of government policies designed to meet the Kyoto agreements. This is one of those sleeper issues that could come upon our doorsteps tomorrow.

Special Statistics
EU Becomes China's major Trading Partner in 2004 (table).
World: Total Fruit Imports, per Capita, 1990-2003 (chart)

The authoritative guide to the world apple business today.

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