to more than $3.00 in others during the past 20 years. Within season prices 

 tend to be lowest during the fall months, increase during the winter 

 months, and reach a peak in the early spring. The increase in price is due 

 to diminishing quantities available and increasing cost of farm or com- 

 mercial storage. If storage of apples takes place on a consideralile scale, 

 it decreases available supplies on the market and tends to raise the price. 

 At the same time the prospective price of later sales should increase by 

 the cost of storage. 



Figure 2 shows average farm prices for apples received by United States. 

 New England, and New Hampshire growers over a period of 21 vears. 

 It is of interest to note the close relationship between these price series. 

 This indicates that apple prices received by New Hampshire growers are 

 part of the structure of prices in New England and these in turn bear a 

 definite and stable relationship to the average prices in the United States. 

 The spread between the average prices received in the United States. New 

 England, and New Hampshire, except for several years, has been fairly 

 constant. The similarity of direction of price movement and the constant 

 spread would indicate that there is one market for apples, differing be- 

 tween regions due to cost of transportation and premiums paid for variety 

 and quality of apples. 



Changes in Demand 



The per capita consumption of fresh apples in the United States has de- 

 clined from approximately 50 pounds in 1931 to al^out 25 pounds in 1947. 

 The drop in consumption during the 1930"s was much more severe than 

 during the 1940's. Since 1948, consumption appears to have leveled off 

 ■d^ abuut 25 pounds per capita. 



Figure 3. Average United States per capita conisuniption of apples, fresh and 



processed, in pounds, 19.30-5.3. 



The large drop in apple consumption during the 1930's can not neces- 

 sarily be attributed to the drop in consumer income. Historical evidence 

 of the relationship between producers' gross income from sales and apple 

 production in New Hampshire shows that total income from apples has 

 increased during periods of increased production. Similarly gross income 

 from apple sales has declined with declines in apple production. This 



