Belrose, Inc.
Belrose, Inc.
June
2010, World Apple Report Highlights
Fighting Depressed Prices
Apple growers are either currently struggling with, or have recent experience
with, depressed prices. This article argues that demand for apples tends to
be relatively stable, Thus, most fluctuations in prices are caused by changes
in the supply of apples and, to a lesser extent, competing fruits. Changes
in incomes generally have very small incremental effects on apple prices.
Cures for depressed prices often fall short. For example, many growers believe
that reducing marketing margins would boost farm prices. However, many different
operators provide the services needed to bring products from the farmer to
the consumer. They will be reluctant to take lower pay. Restricting imports
is less feasible as trade barriers have come down. Boosting demand through
promotional programs is no longer possible in many countries since many of
those programs have been dismantled. Supply is difficult to control under
either voluntary or mandatory programs. The prudent response for individual
growers is to expect loss-making years and to include reserves for those situations
in all long-term plans.
Jaime Oliver Asks for More
famed British chef Jaime Oliver has taken his campaign against unhealthy school
meals and childhood obesity to the United States with a six-episode television
series called "Jaime Oliver's Food Revolution." The series was set
in Huntington, West Virginia, reputedly the "unhealthiest city in the
United States." Jaime faced considerable short-term opposition, but some
successes in Huntington. However, the long-term effects are not yet known.
In the meantime, the London Times reported that Jaime's campaign for healthier
food in British schools had done more to improve student performance than
government literacy programs. The apple industry needs to consider the wisdom
of linking some of its healthy eating programs with celebrities such as Jaime
Oliver. They provide the sort of access to the media and to nationwide audiences
that industry groups cannot duplicate.
Food Business Recovering
There are signs that the retail food business in the United States has begun
to recover from the large decline in sales that followed the recession that
began in 2008. Seasonally adjusted grocery store sales in the first quarter
of 2010 moved ahead of the pre-recession peak in the fourth quarter of 2008.
Sales of club/superstores have also passed pre-recession levels. However,
sales in food services outlets (restaurants, cafeterias, etc) did not fall
during the recession, but they too increased in the first quarter of 2010.
Price pressures are likely to continue in all these outlets as consumers continue
their thrifty habits.
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