April 06

April 2007, World Apple Report Highlights

India: From Quiet Self-confidence to Outrageous Ambition
India has undergone a dramatic transformation since it began to liberalize its economy in the 1990s. While it is still shaking off the vestiges of socialism, the payoff to reform has silenced most critics. India is now attempting to build a modern food system virtually from scratch and to transform its agriculture to meet that system's needs. In the meantime, imports of items like fresh apples, pears, oranges and kiwifruit have been booming. Those imports should continue to grow for the foreseeable future.

Flat Payoffs: Implications for Decision-makers
This article cites evidence from a paper by a professor in Western Australia, David Pannell, that questions the use of optimization techniques in making decisions in agriculture. Pannell demonstrates that payoffs to inputs are often relatively flat for a wide range of input levels around the optimum point. Thus, it may not be worth investing in additional information or technology to reach a single optimum point. The findings have broad implications for the usefulness of research that simply moves the farmer nearer to the optimum point or the use of precision agriculture techniques.

Specialty Crops Make First Cut
Specialty crops (including apples) are included in the first version of the 2007 U.S. farm bill released recently by the USDA, something they have been pursuing for several years. However, it is important to recognize the potential negative effects of such recognition. Since farm bills are written for five- or six-year terms, there is a danger of being locked into unsuitable policies when business circumstances change. Rivals overseas can easily develop strategies to offset U.S. policies. The article also questions some of the proposed uses of Specialty crop funds.

Special Statistics

India: Sample Produce Prices in the organized Retail Sector, Hyderabad, February 2007 (table).
Hypothetical Price Structure for Washington red Delicious Apples in Hyderabad, India, for
Different Levels of Import tariffs (table).
Asia: Fresh Apple Imports, by Region, 2000-2005 (chart).
Selected Asian Countries: Share of Fresh Apples Imported from China, 2005

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