Belrose, Inc.
World Fruit Market Analysis
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May 2010, World Apple Report Highlights

The Doctrine of Sustainability
The food and agriculture systems have been under attack for not operating in a sustainable way. Many have adopted more sustainable practices such as using less fossil fuels, composting waste or fostering local connections. However, this article argues that this will not be enough to satisfy many of the leading promoters of sustainability. They are opposed to the principles on which the capitalist system has flourished, where consumers seek to maximize their personal satisfaction in the products that they buy, and businesses seek to maximize profits from the goods and services that they sell. Consumers and producers, it is argued, are not held accountable for the external effects of their choices, such as increased pollution, and governments cannot be trusted to monitor or supervise markets. The solution, according to the doctrine of sustainability, is an end of large corporations and a return to small-scale, local food systems. On their present trajectories, there are likely to be major philosophical and practical clashes between the current agricultural system and the vision of agriculture being promoted under the doctrine of sustainability.

Trade Challenges Grow
The world apple industry continues to expand production in the major exporting countries at a faster rate than world population is growing. Exports have been growing rapidly in Asia, Eastern Europe and the Southern Hemisphere, but further substantial increases in exports are likely in the next few years. The problem could be particularly acute for China. There is a limit to how many more apples the domestic market can absorb. China could be forced to ramp up its export expansion efforts, bringing more intense competition to markets around the world.

U.S. Organic Scorecard
The USDA,NASS has just issued its first ever census of organic agriculture in the United States for the year 2008. The total value of organic sales was $3.165 billion, 61.4% crop products and 38.6% animal products. Organic agriculture accounted for about one percent of U.S. farm sales in 2008. The share was higher for major fruits: apples (6.2%), pears (4.1%), grapes (3.6%) and sweet cherries (2.7%). Apple organic acreage exceeded over 20,000 acres in 2008, but almost all of that acreage was in the desert areas of the western states. Washington State alone accounted for almost 65 percent of organic apple acreage. Organic apple acreage had lower average yields, but higher average price per ton. Value per acre was 8.2% higher, but higher organic costs per acre may have offset the higher revenue.

Special Statistics

The authoritative guide to the world apple business today.

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The World Apple Report Celebrates its Fifteenth Anniversary in 2009!

Belrose, Inc.
1045 NE Creston Lane
Pullman, WA 99163, USA
Email: belrose@pullman.com

Tel: 509-332-1754
Fax: 509-334-5209