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June 2005, World Apple Report Highlights

Trade Talks in Trouble
As the export capacity for fresh apples and concentrated apple juice continues to rise around the world, the apple industry should be concerned about the continuing failure of attempts to liberalize agricultural trade. It is almost twenty years since the effort to liberalize global agricultural trade was launched with the GATT meeting in Uruguay. The fruit of that effort were implemented a decade ago in January 2005. Since then, there has been virtually no progress within the World Trade Organization (WTO) in further liberalization. The support of President Bush and other world leaders will be needed to break the present impasse. However, they will only act if pressure from those who will benefit from freer trade outweighs the well-organized plaints of the protectionists.

Shoppers' Changing Habits
This article cites a number of recent studies to document shifts in the shopping habits of U.S. consumers. A study funded by Unilever indicates the virtual disappearance of the major stock-up trip that was associated with the stay-at-home housewife. 62 percent of shopping trips are now quick trips for one or two items while 25 percent are fill-in trips between major stock-ups. The apple industry needs to examine ways to get included in these quick trips. One FMI study showed that shoppers still make most of their trips to their primary grocery store. Another FMI study showed that Hispanic shoppers spent more on food, but wanted bilingual store employees and signs.

Spotlight on Food and Fat
The food industry is unhappy with being blamed for increased obesity, but is struggling to know what to do about it. A study by Matthew Reeves of Michigan State University found that only 3 percent of Americans met the minimum four health guides, namely, not smoking, exercising regularly, eating adequate servings of fruits and vegetables and maintaining a healthy body weight. The U.S. Department of Agriculture's new food pyramid has garnered more criticism than favor for its efforts to suggest better diets. Its interactive web site, www.mypyramid.gov, offers opportunities for industry tie-ins. A study by the Centers for Disease Control and the National Cancer Institute has muddied the obesity waters further by suggesting that death rates were lower for those moderately overweight than for those of normal or underweight.

Special Statistics
United States: Agricultural Exports and Imports, Fiscal Years, 1991 to 2005 (chart).
U.S.: Red Delicious: Absolute and Percentage Marketing Margins, monthly, 2003 and 2004 (chart).

The authoritative guide to the world apple business today.

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