Apple, industry adjusts
(Continued from Page El 2)
Carolina. In Pennsylvania, about
40 percent of all apples grown are
sold to processors of canned slices
and sauce. "
The declining use of canned
slices and sauce has been partially
offset by population growth. As the
population has increased, the
demand for these products has
required about the same quantity
of apples. However, if consumption
declines much further, growers
will probably be unable to sell the
same quantity to processors of
canned slices and sauce. Many of
the varieties produced for sauce or
slices are considered low quality
for the fresh-apple market. As a
result, peeler apples marketed
fresh must often be sold at prices
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substantially lower than those of
the premium fresh-market
varieties. Moreover, growers
typically receive lower prices for
juice apples than for fresh or
peeler apples. In short, growers of
peeler apples face both a shrinking
existing market and weak alter
native markets.
n* Manwtfonaf Market
Although U.S. apple growers are
concerned about the drop in
consumption of some apple
products, they are also enjoying
greater sales opportunities on the
international market. At the same
time, our domestic fresh-apple
market is being tapped by foreign
growers, particularly those in the
southern hemisphere, who harvest
their crop during our spring. Sales
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to countries in the Pacific account
for most of the growth in U.S.
exports of fresh-market apples.
Exports are made to many other
areas as well, including Scan
dinavia and the Middle East. Apple
packers, together with state
departments of agriculture, have
worked hard to promote exports of
fresh and processed apples.
The role of apple juice in in
ternational trade and its impact on
the U.S. apple industry is in
teresting and, to some, alarming.
Substantial volumes of con
centrated apple juice have been
imported into the United States
during the last few years. In fact,
we now import more apple juice
than we produce from
domestically grown apples.
Countries of western Europe and
the southern hemisphere are the
biggest sellers in the U.S. market.
The recent surge in exports of
Myerstown, PA
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apple juice to the United States has
been attributed to the strength and
stability of our currency. Some
countries, it is argued, need a
sound currency to pay off their
international debts. Others,
because of the strength of our
dollar as compared with their own
currencies, find that they reap
greater profits by selling apple
juice to America than they would
by selling it at home. If this is the
case, then imports of foreign-made
apple juice will likely decrease
when the dollar weakens. In the
meantime, U.S. apple growers
tend to view imports of con
centrated juice as price depressors
in the domestic market. They are
no doubt right; they probably
would get higher returns if imports
were reduced. Domestic producers
will enjoy a much stronger market
for their juice apples if and when
America becomes a less attractive
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place for foreign producers.
While considered troublesome
by some, the influx of foreign
made juice may actually be a
blessing in disguise. In fact, it may
have helped to develop a much
larger market for apple juice than
would have existed had the United
States depended solely on domestic
supplies. The current volume of
canned apple juice is large enough
to require a generous allocation of
shelf space in virtually every
supermarket. Most supermarkets
carry frozen concentrated apple
juice in frozen food cases, cider in
produce departments, and apple
juice in dairy cases. Consumers
attracted by the increased
visibility and convenience of apple
juice are buying more of it.
For:
Ctamfcg Markets
The market for the American
(Turn to Page El 4)
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