March 06

March 2006, World Apple Report Highlights

A Viable Replacement Program for Mandatory Promotion Programs
In many apple producing countries, mandatory promotion programs have either become illegal or out of fashion. However, efforts to develop voluntary promotion programs continue to founder on the "free rider" problem. This article describes some experiments conducted by three agricultural economists at Cornell University that suggest there is a viable alternative to mandatory promotion programs. One of the keys is to make the launch of a promotional program conditional on reaching a specific funding target and voting approval from producers. If the funding target is not met, funds already contributed are returned to the producers. The researchers show how such a voluntary promotional program could be fine-tuned to meet various producer objectives.

Measuring International Competitiveness
This article gives the results of the World Apple Report's eleventh annual comparison of the competitiveness of 28 major apple producing countries. Countries were compared on 22 criteria that included measures of production efficiency, industry structure and inputs and financial and market factors. Chile once again emerged in first place, followed closely by New Zealand. These countries combine great natural resources with modern infrastructure and market systems. France was in third place. It has a big advantage in being close to many large markets. Italy, the Netherlands and the United States filled the next three places.

Who is the Fairest Exporter of All?
A key element in international competitiveness is a country's export performance. This article shows that different countries excel on different criteria. For example, in the year 2004, China had the largest volume of exports, ahead of Chile and France. However, France had the greatest value of exports ahead of Italy and the United States. China was only fifth in value of exports. However, the surprise leaders in terms of price were none of the big five but were Japan ($2,735.65 per metric ton) and Australia ($1,142.65). Our conclusion, when all factors were taken into account. France can probably still claim to be the world's number one fresh apple exporter.

Special Statistics

Southern Hemisphere: Production and Fresh Exports of Apples, 2004-06 (table).
Southern Hemisphere: Production and Exports of Concentrated Apple Juice, 2004-06 (table).
International Competitiveness Rankings, 28 countries (table).
Five Leading Exporters: Volume of Fresh Apples Exported, 2002-04 (table).
Southern Hemisphere Apple Exporters: Percent Change in Prices due solely to Changes in the Exchange
Rate of their Currency against the U.S. Dollar (chart).

The authoritative guide to the world apple business today.

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