September 08

September 2008, World Apple Report Highlights

Economic Slowdown Gathers Speed
The spreading contagion from the economic slowdown in the United States that was headlined in the July 2008 issue of the World Apple Report has begun to pick up speed. Not alone are many developed countries being affected, but even major developing countries like China and India are beginning to feel the pain. Consumers are making major changes in their attitudes and behavior, and retailers are making major adjustments to their products and pricing to meet changing consumer preferences. It is too early yet to predict how deep or prolonged the slowdown will be. The apple industry needs to remain flexible both in pricing its products and in its promotional efforts to make the most of a potentially difficult period.

Rethinking Priorities
Many argue that global warming will permanently alter the world as we know it and that governments ought to take remedial measures regardless of the costs or disruptions imposed. This article discusses counter arguments by Bjorn Lomborg, director of the Copenhagen Consensus, that many of the proposed expenditures to combat global warming would generate limited returns per dollar invested. For example, studies suggest that present schemes to mitigate carbon emissions would generate a return of 90 cents on the dollar whereas a similar expenditure on cheap drugs to combat heart disease in poor countries would return $25 for each dollar invested. Lomborg argues for choosing higher return investments of public funds while we wait to find more effective methods of combating global warming.

Return of COOL
Introduction of Country of Origin Labeling (COOL) was mandated in the 2002 U.S. Farm Bill, but subsequently postponed because of widespread objections. Under terms of the 2008 Farm Bill, recently passed by the U.S. Congress, the COOL requirements will become law on September 30, 2008. Because the 2008 version has less onerous requirements, reduced record-keeping and smaller penalties for inadvertent infractions, it has faced less opposition. However, the responsible agency, USDA,AMS, notes that the introduction of the COOL provisions will initially cost the U.S. economy about $2.7 billion, and that the annual cost could exceed $700 million with little obvious benefit to consumers. The fruit industry is not expected to suffer undue inconvenience, because origin labels are already found on about 60 percent of supplies.

Special Statistics
United States: Non-alcoholic Beverage Market, 2007 (table).
EU, Selected Countries: Gross human apparent consumption of apples, 2006 (chart).
Major Apple Producing Countries: Carbon Dioxide Emissions, 1990 and 2004 (table).

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