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November 2004, World Apple Report Highlights

Finding Happiness with Alternative Fruits
Finding a new alternative crop to apples is like finding a new sweetheart. One has to be sufficiently enamored of the new beau to want to make the effort. At the same time, one has to retain sound judgment in order to avoid painful future regrets. This article discusses what should go into any decision on adopting a new crop. One must look, for example, at the potential advantages of your orchard, region, markets and support systems and the potential strength of competition. If a lot of one's neighbors are chasing the same beau, it should make one doubly cautious.

Southern Hemisphere Impact
This article reviews preliminary USDA estimates of the production and exports of fresh apples, fresh pears and concentrated apple juice from the six major deciduous fruit producing countries in the Southern Hemisphere. These data suggest a consolidation of exports of fresh pears and CAJ near last year's levels, but a substantial boost in exports of fresh apples, especially from Brazil, Chile and New Zealand. These increased supplies undoubtedly contributed to weaker prices later in the calendar year 2004.

Discounting Menace Spreads
Recent developments in the food distribution system suggest that the discounting of prices is likely to continue. With the continued success of major discounters like Wal-Mart and Tesco, and the sniping from smaller discount chains like Aldi and Lidl, the world's second largest retailer, Carrefour of France, has itself been forced to become a more aggressive discounter. Many other traditional retailers are under pressure from discounters that have newer facilities, lower cost systems and younger employees with lower health care and pension liabilities. The more intense the discount battle at retail, the more suppliers will be drawn into the fray.

Special Statistics
Southern Hemisphere Apple Production, 2002-2004 (table).
Southern Hemisphere Fresh Apple Exports, 2002-2004 (table).
Southern Hemisphere Concentrated Apple Juice Exports, 2002-2004 (table).
Fruits: How Tariffs Escalate at Different Processing Stages (chart).
Taiwan: Imports of Fresh Apples, Marketing Years, 2000-01 to 2003-04 (table).

The authoritative guide to the world apple business today.

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