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










World Apple Review
2009 Edition
Table of Contents

Forward 2
Table of Contents 3
Tables 6
Charts 7
The Distressed Consumer 8
I. Production of Apples 15
Modest Reversal in Apple Area Underway 15
Average Productivity Rising 17
Production Moving Inexorably Upward 18
Regional Shifts in Production 19
Pressure Mounting from Competing Fruits 21
How Imports Are Changing Fruit Choices 24
Competing Snack Foods 26
Temporary Shift in Rankings of Major Producing Countries 29
Common Trends in Key Apple Producing Countries 31
Developments in Specific Apple Producing Countries 37

Eventful Period for China

37

Restructuring Pays Off in the United States

38

Unease in the European Union

39

Italy Stands Firm

40

France Tries to Reverse Course

41

Influential Germany

42

Poland Battles Volatility

42

Mysterious Iran

43

Uncertain Future in Turkey

43

Promising Russia

44

India Joins Giants

45

Argentina Faces More Adversity

46

Chile Courts Export Markets

46

Brazil Leans on Domestic Sales

47

South Africa Adjusts to Change

47

New Zealand Relies on Science

48

Australia Faces Internal and External Challenges

50

Japan Fights Slow Attrition

50

Spain Invests in Restructuring

51

Austria Goes Green

51

Belgium and the Netherlands Count on Innovation

52

Greece on Down Slope

52

Revival in the United Kingdom

53

Canada Redirects

53

Uneasy Relations for Mexico

54

Economic Forces for Rationalization in Other Europe

54

Modest Expectations for Other Latin America

55

Great Diversity of Asia

56

Cumulative Importance of Other Producing Countries

56
II. Future Apple Production Trends 57
The Future of World Apple Supplies 57
Chasing Profits through Choice of Varieties 61
Prospective Trends in Varieties 64
Other New Varieties Set to Challenge 68
China's Heavy Shadow 69
Familiarity Versus Novelty 69
III. Trade in Fresh Apples 70
Apple Trade Growth Slows 70
Favorable Conditions for Trade Changing 71
Few Leading Fresh Apple Exporting Countries 76
Leading Fresh Apple Importing Countries Stable 77
Trade Flows in Calendar Year 2007 78
Major Differences in Targeted Markets 80
Share of Markets for Major Supplying Regions 81
Challenging Trade Scenario Ahead 84
IV. Consumption of Fresh Apples 85
Per Capita Availability of Apples Rebounds 85
Critical Importance of Domestic Consumption 86
Consumption Trends in Non-Producing Countries 91
Related Produce Consumption Trends 93
What Can Apples Do? 95
Can Per Capita Consumption of Fresh Apples be Increased? 99
V. Prices and Marketing Margins 101
Back on the Price Roller-Coaster 101
How Price Trends Are Transmitted from Consumer to Grower 104
Wholesale Price Trends 105
Growers Enjoy Better Prices 107
How Marketing Margins Adjust to Changing Retail Prices 108
Mixed Influence of Processing Sector on Apple Prices 111
Influence of Other Fruits on Apple Prices 113
Influence of Trade on Apple Prices 114
Exchange Rates Contribute to Distorted Price Signals 116
Demand for Fresh Apples, Past and Future 118
VI. The Processed Apple Sector 119
Uptrend in Apple Processing 119
Leading Apple Processing Countries 120
Concentrated Apple Juice Still Dominant 121
CAJ Price Roller-Coaster 123
World Trade in CAJ Slows 124
CAJ Trade Flows Difficult to Measure 125
Future Prospects for the Processing Apple Sector 129
VII. Critical Issues Facing the Apple Industry 130
Productivity Even More Vital in Tough Times 130
International Competitiveness Rankings 132
Value Conundrum for Produce 134
Chasing Organic Gold 135
Last Thoughts. What Should You Believe? 136
Country Index
Tables
World: Apple Production, by Region, Selected Years (1,000 metric tons) 19
World: Apple Production, by Region, Selected Years (Percent) 20
World: Production of Major Fruits, Selected Years 22
EU-15: Imports of Selected Fruits, 1998-2008 24
United States: Imports of Selected Fruits, 1998-2008 25
United States: Value of Shipments of Selected Snack Foods, 2002-06 26
Top Apple Producing Countries, 2007: Volume of Production, Selected Years, 1990-2008 29
World Apple Production Trends and Forecasts: Actual 2005, Preliminary 2008 and Forecast 2010 and 2015. 59
Major Apple Producing Countries, excluding China: Variety Trends, Actual 2005, Preliminary 2008 and Forecast 2015
65
Production of Major Apple Varieties in 35 Countries, excluding China 67
Top Ten Fresh Apple Exporters, 2004-2008 76
Top Ten Fresh Apple Importers, 2004-2008 78
Major Regional Trade Flows of Fresh Apples, Calendar Year, 2007 79
Distribution of Fresh Apple Supplies, by Major Markets, Calendar Year, 2007 81
Market Share of Major Fresh Apple Suppliers in Each Region, Calendar Year, 2007 82
Major Fresh Apple Importing Countries: Key Suppliers, Marketing Year, 2007-08 83
Europe: Estimated Per Capita Consumption of Fresh Apples, Selected Countries, 1991-2008 88
Other Major Producing Countries: Estimated Per Capita Consumption of Fresh Apples, Selected Countries, 1991-2008
90
Non-Producing Countries: Estimated Per Capita Consumption of Fresh Apples, 1990-2006 92 92
Selected Developed Countries: Per Capita Consumption of Fresh Produce, Selected Years, 1990-2007
94
United States: Per Capita Consumption of Fresh Fruit, 1980-2007 96
United Kingdom: Per Capita Consumption of Fresh Fruit, 1990-2007 96
Japan: Per Capita Consumption of Fresh Fruit, 1990-2007 97
United States: Quantities of Apples in Major Alternative Uses, Selected Years, 1991-2007 111
United States: Prices of Apples in Major Alternative Uses, Selected Years, 1991-2007 112
France, Japan and the United States: Retail Prices of Fresh Apples and Competing Fruits, 1998-2008
113
EU-27: Average Apple Export Prices of Major EU Exporters, 2004-2008 115
EU-27: Average Apple Import Prices of Major Exporters, 2004-2008 116
World: Apples for Processing, by Regions, Selected Periods, 1994-2009 120
Top Ten Apple Processing Countries, Selected Periods, 1994-2009 120
World: Production of All Apples, Apples for Processing, Apples for CAJ and CAJ Produced, by Region, 2008-09
121
Top Ten CAJ Exporting Countries, 2005-06 to 2008-09 125
EU-15: Quantity and Average Price of CAJ Imports, 2006-08 126
United States: Imports of CAJ, Calendar Years, 1995-2008 127
China: Exports of CAJ, by Volume, 2000-2008 128
Major Processing Countries: Apple Processing Trends, Actual 2000, Preliminary 2008 And Forecast 2015
129
Comparative Performance Measures, 2009 130
Major Apple Producing Countries: Comparative Performance Measures of Production Efficiency, 2009
131
Major Apple Producing Countries: Competitiveness Rankings, 2009 132
Charts
China and Rest of World: Trends in Area of Apples Harvested, 1990-2008 15
China and Rest of World: Trends in Average Yields of Apples, 1995-2008 17
China and Rest of World: Trends in Apple Production, 1995-2008 18
Slices of the 2007 World Fruit Pie (Percent) 23
European Union: Apple Production, by Major Categories of Varieties, 1997-2008 62
United States: Apple Production, by Major Categories of Varieties, 1997-2008 63
World: Exports of Fresh Apples, Marketing Years, 1993-94 to 2007-08 70
World: Per Capita Supplies of Apples, 1990-2008 85
Japan: Annual Household Expenditures on Fresh Apples, 1989-2008 98
United States: Average Monthly Retail Prices of Fresh Red Delicious Apples, 2005-2009 102
France: Average Monthly Retail Prices of Fresh Apples, 2005-2009 103
United States: Fruit Price Indexes at Consumer, Wholesale and Producer Levels, 1995-2008 104
United States: Producer Price Indexes, Red Delicious and Golden Delicious Apples, 2000-08 105
United States: Producer Price Indexes, Granny Smith, McIntosh and Rome Apples, 2000-08 106
United States: Grower Selling Prices of All Apples, Actual and Deflated, 1990-2008 107
United States: Red Delicious, Retail Prices and Marketing Margins, Sep 2006 to Jan 2009 108
France: Marketing Margins for Fresh Apples, 2001-08 109
Japan: Marketing Margins for Fresh Apples, 1995-2008 110
Selected Apple Exporters: How Exchange Rate Changes Boosted or Reduced Producer Prices, 1996-2001 and 2001-2006
117
Selected Countries: Trends in Production of CAJ, 2000-2009 122
United States: Average Monthly Prices of Imported CAJ, Sep 2007 to Feb 2009 123
World: Exports of CAJ, 2000-01 to 2008-09 124

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1045 NE Creston Lane
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Tel: 509-332-1754
Fax: 509-334-5209

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