Belrose, Inc.
Belrose, Inc.
July
2009, World Apple Report Highlights
Recession
Progression
This article reviews the trajectory of the global recession that followed
the banking crisis of late 2008. In addition to normal economic slowdown,
this recession was accompanied by an implosion of the banking sector, implosion
of household balance sheets and dramatic shrinkage of global trade. The economies
of many countries fell "off the cliff" in late 2008 and early 2009.
From the limited data available, it appears that the recession weakened demand
for many fruits and vegetables. The article also examines the prospects for
recovery based on recoveries from past recessions. The speed and strength
of the recovery will depend on rapid stabilization of the housing market,
a restoration of consumer confidence and a loosening of consumer and business
credit.
Food Buying
Habits Changing
All the major polling organizations are reporting that the current economic
crisis is dramatically altering consumer behavior. In general, consumers are
shopping less. In eating out, many consumers are switching from upscale to
fast food restaurants, or replacing restaurant meals with prepared meals from
the grocery store. In their grocery shopping, many are trading down in brand
or quality and bargain hunting through searching ads, using coupons or buying
more advertised specials. A survey of major U.S. retailers suggested that
they were expecting sales to begin to recover in the second quarter of 2009.
To Russia with
Hope
The market in Russia has been a major driver of global demand for fresh apples,
fresh pears and many other fruits. The sudden downturn in the Russian economy
has put much of that demand at risk. An analysis of EU exports to Russia through
the first half of 2009 shows that the total volume of exports has not changed
much, but sales of low price fresh apples from Eastern Europe have surged
while sales of higher-priced apples from Western Europe have fallen sharply.
U.S. exports of fresh apples to Russia fell well below recent peaks and dropped
more dramatically than in previous years. Until the Russian economy recovers,
Russian demand for higher quality fruits is unlikely to recover.
Special Statistics
The authoritative guide to the world apple business today.
Belrose, Inc., 1045
NE Creston Lane, Pullman, WA 99163, USA
E-mail to: belrose@pullman.com
Tel: 509-332-1754
Fax: 509-334-5209
Belrose, Inc.
1045 NE Creston Lane
Pullman, WA 99163, USA
Email: belrose@pullman.com
Tel: 509-332-1754
Fax: 509-334-5209