July 06

July 2006, World Apple Report Highlights

The Future Apple Trade
This article presents forecasts of future apple production through the year 2015 and estimates of the exports and imports that are likely to be generated. Exports of fresh apples could rise by 16.5 percent between 2005 and 2010 and by a further 13.6 percent by 2015. This could occur even though the percent of world production exported will grow modestly from 13.1 to 13.9 percent. China will play a key role. Its fresh apple exports are expected to double between 2005 and 2015. Southern Hemisphere exports are expected to increase by 30 percent. The apple industry will need help from governments and industry bodies if profitable new markets are to be found for these increased exports.

Is Direct Marketing the Answer?
Many analysts have suggested that one way in which apple producers can escape the stifling influence of major retailers is to use more direct marketing outlets. Producers should only choose the direct marketing route if it makes business sense for them. The demand for direct marketing is limited and easily over-supplied. Direct marketing also requires a different set of personal skills from those required to run an isolated orchard. In many forms of direct marketing, the producer becomes the retailer and must face the same challenges all retailers face in differentiating themselves from their competitors. Ironically, producers who direct market end up having to deal with the different tyranny of the picky consumer.

The Messiness of Migration
Migrants are an important labor source for the apple industry. The industry could be heavily impacted by the efforts of many governments to control immigration. This article describes a recent report on immigrants in the European Union between 1990 and 2004. It shows that many factors including former colonial ties, a common language, desire to escape war or political or social strife, or job opportunities affect the supply and demand for migrants in each country. For many countries, these factors have changed over time. If agriculture is to enjoy sensible policies for such a diverse body of immigrants and potential immigrants it will need much better information and assessments of the migrant flows that enter agriculture.

Special Statistics
Production and Fresh Exports of Apples, by Region, 2005-2015 (table).
The Hemisphere's Compared: Average Export Prices of Fresh Apples, 1990-2004 (chart).
Trends in Fresh Apple Imports, Emerging Markets, Brazil, Mexico and Taiwan, 1990-2005 (chart).

The authoritative guide to the world apple business today.

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