January WAR 09

January 2009, World Apple Report Highlights

Biggest Stories of 2008
This article reviews major developments in the world apple business and highlights those most likely to have a long-term impact on the industry. Among the top five are the vicious swing in the fortunes of the global economy and the related resurgence of discount retailers; the continued impasse over labor supply and immigration; lagging consumption, its causes and possible cures; and the policies being proposed by national governments and international bodies to reduce global warming that could affect every facet of the fruit supply chain. Developments in China, Russia and India will continue to impact the fruit world.

Clouds over Organic
The torrid rate of growth in demand for organic foods has slowed dramatically in many countries as the global economy has tanked. Varied surveys indicate that the less committed retailers and consumers have trimmed their organic purchases or the price premiums they are willing to pay for organic products. At the same time, organic products are facing greater competition from other foods that appeal to the social conscience of consumers including, local, sustainable, fair trade or other eco-labeled products. Organic apple premiums have been declining.

China's New Milestones and Challenges
The Chinese apple industry has reached new milestones with a record apple harvest of 28.5 million metric tons (mmt) in 2008. Production is expected to continue to rise through 2015. By then, China could have 2 mmt of fresh apples and 1.5 mmt of concentrated apple juice available for export. This will present a huge marketing challenge for China and for its global competitors. China will have to achieve dramatic increases in yield, quality and traceability of production, and in marketing infrastructure to maintain the profitability of its exports.

Special Statistics
United States: Advertised Retail Prices of Organic Apples, Fall 2008 (chart)
United States: Prices and Margins for Fresh Apples, October 2008 (table)

The authoritative guide to the world apple business today.

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