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August 2005, World Apple Report Highlights

Marketing Struggles in Europe
Marketing of fresh apples and pears in Europe has been difficult for Southern Hemisphere suppliers in 2005. This results from a combination of sluggish demand, intense retail competition, large carryovers of European stocks and the relative strength of the pound sterling and the euro that caused too many shippers to focus on the European markets. Prices moved down steadily for much of the summer and became chaotic at the end of the season. This article analyses prices by variety, size and origin.

Varieties: Changing of the Guard Continues
The annual World Apple Report survey of North American retailers shows that newer varieties such as Gala, Fuji and Braeburn have routed the old favorites such as Red Delicious, Golden Delicious and McIntosh. For the first time, Washington State ranked ahead of both New Zealand and Chile as a supplier of these three newer varieties. Retailers considered Honeycrisp the most impressive newcomer. Retailers planned to stock more Gala, Fuji, Jonagold, Pink Lady®, Cameo™ and Braeburn in the coming year, indicating a continued switch towards the newer varieties.

Asia's promise Not Quite Restored
Between 1975 and 1995, a booming Asia was the biggest driver of world demand for many products, including fresh apples and pears. Japan's stumbles in the 1990s, and the widespread Asian financial crisis in 1997 burst the boom dramatically. Asian economies have been trying to claw back on the fast growth path ever since. However, the economies of both Northeast Asia and Southeast Asia only recovered to the 1998 level in 2004, far below the past growth path. The bright spot in Asia has been China where growth picked up speed as the rest of Asia slowed. However, because of its large domestic apple and pear industries, China has not been a large importer of these products.

Special Statistics
Average Retailer Ratings, by Variety, 2005 (chart)
Average Retailer Ratings, by Supplier, 2005 (chart)
Ocean Freight Rates: West Coast U.S. to Selected Asian Ports (chart)
Rotterdam Wholesale Market: Prices of Royal Gala, by Source, 2005 (chart)
U.S.: Consumption of Major Non-alcoholic Beverages, 2002 (chart)

The authoritative guide to the world apple business today.

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