Belrose, Inc.
World Fruit Market Analysis
"Dedicated to Successful Global Apple Marketing"










World Apple Review
2008 Edition
Table of Contents

Forward 2
Table of Contents 3
Tables 6
Charts 8
Unwelcome House Guests 9
I. Production of Apples 15
Bearing Area at a Turning Point 15
World Apple Production Plateaus for now 17
Regional Shifts in Apple Production 19
Pressure from Competing Fruits 21
Manufactured Snacks on the Defensive 25
Major Producing Countries Jostle for Position 28
Trends in Key Apple Producing Countries 30

China Makes Giant Strides

36

United States Industry Consolidates

37

Uncertainty Continues in European Union

37

Poland Battles Weather and Renewal

38

Italy Maintains its Place

39

France Retrenches

40

Pivotal Role of Germany

40

Industry near Peak in Turkey?

41

Political Uncertainties Dog Iran

41

Russian Federation Unleashed

42

India Sees Opportunities in Apples

42

Japan in Holding Pattern

43

Cry for Argentina

44

Australia Waits for the Ax

44

Brazil Focuses on Exports

45

Chile: Copper Holds the Key

45

New Zealand New Initiatives

46

South Africa Faces New Challenges

47

Spain Marks Time

48

Austria Focuses on its Advantages

48

Adjustments in Belgium and the Netherlands

49

Static Picture in Greece

49

Canada Continues to Restructure

49

Mexico Maintains Production Levels

50

Other Europe Seeking Unique Varieties

51

Other Latin America Dealing with Economic Uncertainties

51

Struggles in Other Asia

52

Other Producing Countries Can Make a Difference

52
II. Future Apple Production Trends 53
Role of Long-term Forecasts of World Apple Supplies 53
Apple Variety Trends 57
Prospective Trends in Varieties 60
Emerging New Stars 64
The China Factor 64
Playing the Variety Game 64
III. Trade in Fresh Apples 66
Fresh Apple Trade Still Rising 66
Forces Affecting Apple Trade Trends 67
Identifying the Leaders in Fresh Apple Exporting 71
Stability Among Top Fresh Apple Importing Countries 72
Trade Flows in 2006-07 74
Distribution of Supplies, by Major Markets 76
Market Penetration by Major Suppliers 77
Future Trade Prospects 79
IV. Consumption of Fresh Apples 80
Per Capita Availability of Apples Declines 80
Per Capita Fresh Consumption in Major Producing Countries 81
Consumption Trends in Non-producing Countries 85
Related Produce Consumption Trends 86
How Apples Compete in the Fruit Space 88
Prospects for Increased Per Capita Consumption of Fresh Apples 91
V. Prices and Marketing Margins 94
Strong Prices Encourage Producers 94
Different Variety Price Trends at Wholesale 97
Grower Prices Reflect Current Upsurge 100
Marketing Margins Remain Rigid 101
Influence of the Processing Sector on Apple Prices 104
Influence of Other Fruits on Apple Prices 107
Influence of Trade on Fruit Prices 108
Distorting Effects of Exchange Rate Changes 111
Implications for Demand 112
VI. The Processed Apple Sector 113
China Leads Expansion in Apple Processing 113
Leading Apple Processing Countries 114
Production of Concentrated Apple Juice (CAJ) Slows Temporarily 115
Strong Upward Trend in World CAJ Trade 118
Critical CAJ Trade Flows 119
Future Prospects for the Processing Apple Sector 124
VII. Critical Issues Facing the Apple Industry 125
Productivity Increases Still Crucial 125
Regulatory Zoo 131
Preparing for Sustainability 133
New Economic Order 136
Country Index 137
Tables  
World: Apple Production, by Region, Selected Years (1,000 metric tons) 19
World: Apple Production, by Region, Selected Years (Percent of Total) 20
World: Production of Selected Fruits, Selected Years 21
EU-15: Imports of Selected Fruits, 1996-2007 23
United States: Imports of Selected Fruits, 1996-2007 24
Top Apple Producing Countries, 2006: Volume of Apple Production,
Selected Years, 1990-2007
28
World Apple Production Trends and Forecasts, Actual 2000,
Preliminary 2007 and Forecast 2010 and 2015
55
Major Apple Producing Countries, excluding China: Variety Trends,
Actual 2000, Preliminary 2007 and Forecast 2010 and 2015
61
Production of Major Apple Varieties in 35 Countries: Preliminary 2007
and Forecast 2010 and 2015
63
Top Ten Fresh Apple Exporters, 2004-2007 72
Top Ten Fresh Apple Importers, 2004-2007 73
Major Regional Trade Flows of Fresh Apples, Marketing Year, 2006-07 74
Distribution of Fresh Apple Supplies, by Major Markets,
Marketing Year, 2006-07
76
Market Share of Major Fresh Apple Suppliers in Each Region,
Marketing Year, 2006-07
77
Major Fresh Apple Importing Countries: Key Suppliers,
Marketing Year, 2006-07
78
Europe: Estimated Per Capita Consumption of Fresh Apples 82
Other Major Producing Countries: Estimated Per Capita Consumption
of Fresh Apples
24
Selected Developed Countries: Per Capita Consumption of Fresh Produce,
Selected Years, 1990-2006
87
United States: Per Capita Consumption of Fresh Fruit, 1980-2006 88
United Kingdom: Per Capita Consumption of Fresh Fruit, 1990-2006 89
Japan: Per Capita Consumption of Fresh Fruit, 1980-2007 90
United States: Quantities of Apples in Major Alternative
Uses, 1991-2006
105
United States: Prices of Apples in Major Alternative Uses, 1991-2006 106
France, Japan and the United States: Retail Prices of Fresh Apples and
Competing Fruits, 1997-2007
107
EU-27: Average Export Prices of Major Exporters, 2004-2007 109
EU-27: Average Import Prices of Major Suppliers, 2004-2007 110
World: Apples for Processing, by Region, Selected Periods, 1994-2008 113
Top Ten Apple Processing Countries, Selected Periods, 1994-2008 114
World: Production of All Apples, Apples for Processing, Apples for CAJ,
and CAJ Production, by Region, 2007-08
116
Top Ten CAJ Exporting Countries, 2004-05 to 2007-08 119
EU-15: Quantity and Average Prices of CAJ Imports, 2005-2007 120
Germany: Quantity and Average Prices of CAJ Imports, 2005-2007 121
United States: Imports of CAJ, Not Frozen, Calendar Years, 1995-2007 122
China: Exports of CAJ, by Volume, 2000 to 2006 123
Major Processing Countries: Apple Processing Trends, Actual 2000,
Preliminary 2007 and Forecast 2010 and 2015
124
Comparative Performance Measures, 2008 125
Major Apple Producing Countries: Comparative Performance Measures
of Production Efficiency, 2008
127
Major Apple Producers: Competitive Rankings, 2008 128
Preparedness to Compete in 2008 130
Charts
China and Rest of World: Trends in Area Harvested
of Apples, 1990-2006
15
China and Rest of World: Trends in Apple Production, 1995-2007 17
China and Rest of World: Trends in Average Yields, 1995-2007 18
Slices of the 2006 World Fruit Pie 22
EU-15: Apple Production, by Major Categories of Varieties, 1997-2007 58
United States: Apple Production, by Major Categories of
Varieties, 1997-2007
59
World: Exports of Fresh Apples, Marketing Years, 1993-94 to 2006-07 60
World: Per Capita Supplies of Apples, 1990-2007 80
Japan: Annual Household Expenditure on Fresh Apples, 1989-2007 91
United States: Index of Retail Prices of All Fresh Apples, Actual and
Deflated, 1990-2007
95
United States: Average Monthly Retail Prices of Fresh Red Delicious
Apples, 2005-2008
96
France: Average Monthly Prices of Fresh Apples, 2005-2008 97
United States: Producer Price Indexes, Red Delicious and Golden Delicious
Apples, 1991-2007
98
United States: Producer Price Indexes, Granny Smith, McIntosh and
Rome Apples, 1991-2007
99
United States: Grower Selling Prices of All Apples, Actual and
Deflated, 1990-2007 Seasons
100
United States: Marketing Margins for Fresh Apples, 1989-2006 101
France: Marketing Margins for Fresh Apples, 1996-2007 102
Japan: Marketing Margins for Fresh Apples, 1989-2007 104
Major Apple Trading Countries: Effects of Exchange Rate Changes
Versus the U.S. Dollar, 1998-2003 and 2003-2008
111
Selected Countries: Trends in Production of CAJ, 2000-2008 115
United States: Average Price of Imported CAJ,
Calendar Years, 1997-2007
117
World: Exports of CAJ, 2000-01 to 2007-08 118

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

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