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March 2004, World Apple Report Highlights

Burdens on Business Competitiveness
This article summarizes the findings of a study by the U.S. National Association of Manufacturers (NAM) on the major factors that put the U.S. manufacturing industry at an 18.3 percent cost disadvantage relative to its major competitors. The main burdens are higher U.S. corporate tax rates, employee benefits, litigation costs, pollution abatement costs and natural gas prices. The result, says NAM, has been greater penetration of imports into the U.S. market and increased incentives for U.S. manufacturers to move production offshore. Agriculture in the U.S. faces these burdens and additional ones related to its extensive use of natural resources. Politicians, bureaucrats and governments need to become more aware of the cumulative burden these mandates are placing on all businesses.

New Zealand: New Zeal for Pipfruit
The New Zealand pipfruit (apple and pear) industry has begun to recover from a period of falling prices and the turmoil caused by deregulation. Prices have been more favorable in 2002 and 2003 and new plantings are again under way. While marginal producers continue to exit the industry, the net area planted is again rising. Deregulation triggered the entry of numerous exporters into the industry. In contrast, further consolidation has occurred at the grower and packer level and many have integrated with or forged alliances with exporters. Having successfully met the internal challenges of deregulation, the industry now faces new challenges as foreign buyers become more demanding and international competition becomes more intense.

Can Branding Work in Fresh Apples?
Brands have been used to build a preference among consumers for items from particular firms, growing districts or countries. Branding works best if all other key aspects of the item (product, price, place, promotion and packaging) are in sync. Branding of agricultural products is more complex because of the number of hands through which an agricultural item may pass on its way from producer to consumer. Brands may be targeted to persuade growers, packers or distributors to prefer a specific firms' product. However, if brands are seeking to significantly influence the buying habits of consumers, they need very substantial promotional support.

Special Statistics
Change in Domestic Prices in Selected Markets Due to Exchange Rate Changes, February 2003 to February 2004 (table).
U.S.: Bearing Acreage of Apples, by Major States, 1996-2003 (chart).
China's Amazing Export Success Continues. Fresh Apple Exports, calendar years,
1991-2003 (chart).

The authoritative guide to the world apple business today.

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