November WAR 07

November 2007, World Apple Report Highlights

Continuing Burdens on Competitiveness
A study by the National Association of Manufacturers has shown that U.S. manaufacturers have been suffering increased costs disadvantages relative to major foreign competitors because of higher burdens of corporate tax rates, employee benefits, litigation costs, pollution abatement costs and natural gas prices. Agriculture in the United States has faced similar cost increases. Regulatory and other burdens continue to be imposed on the basis of emotional arguments without solid analysis of the impact on global competitiveness or the continued viability of specific industries.

Fruit Spending in American Households
This article summarizes some of the main findings with respect to apples and competing fruits of a recent study by Blisard and Stewart on food spending in American households. The findings suggest that there are at least two distinct segments of the apple market. Larger households spent less per person on apples, but more per household. This is the traditional core of the apple market. In contrast, smaller households, often with higher incomes, spent the most per person, suggesting that these households might be the best targets for new or novel varieties that could command a price premium.

The Ascendancy of GlobalGAP
Just a decade ago, a produce working group of several European retailers developed a set of standards on generally agreed practices (GAP) for their suppliers. An organization, called EurepGAP was set up to promulgate these standards. Membership was open to retailers, wholesalers, producers, suppliers, consultants and certification bodies. By 2007, EurepGAP included most major European retailers, 80,000 producers/ suppliers and 100 certification bodies in 80 countries. In recognition that it had become a global operation, the organization's name was officially changed to GlobalGAP in September 2007. This recognition is likely to lead to GlobalGAP becoming the dominant standards-setting body for suppliers of produce around the world.

Special Statistics

Average Annual Expenditures on Fruit, by Household Type, 2004 (table).
Average Annual Expenditures on Fruit, by Income Class, 2004 (table).
Central Asia: Production and Trade in Apples, Selected Years (table).
Weekly Shipments of Fresh Apples to U.S. Market, Total Shipments and Southern Hemisphere Imports, Weeks 8 through 39, 2006 and 2007 (chart).

The authoritative guide to the world apple business today.

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