6 - 



This downward trend in consumption has been influenced by 

 shifts in the demand for apples brought about by population changes, 

 improved incomes, new trends in consumption preferences and changes 

 in the status of substitute or competing products. 



Per capita disposable incomes in the U.S. has been steadily in- 

 creasing over the years and is expected to continue to rise. This 

 should result in a good future demand for apples - if strong promo- 

 tional efforts are continued. 



Storage Trends 



During the period 1946-60 about 44 per cent of the U.S. produc- 

 tion of apples was placed in refrigerated storages. This volume has 

 increased gradually to approximately 54 per cent of the 1963 crop 

 being placed in cold storage. 



Revolutionary changes in the methods used to hold apples have 

 occurred in very recent years with the introduction of C.A. 

 (controlled atmosphere) storage. In 1946, a total of 76,500 

 bushels of apples were stored in C.A. Today nearly 10,000,000 

 bushels are stored in C.A., of which nearly one-quarter are in 

 Tectrol storage. These C.A. stored apples have met with good 

 buyer reaction. 



Mcintosh, Delicious, Jonathan, Rome, and the Newton have 

 accounted for the major varieties commercially stored to date in C.A. 



Fairly substantial increases in C.A. storages throughout the 

 country are still likely, even though the high premium price re- 

 ceived will probably not be received to the extent that it has 

 in the past. 



As C.A. storage holdings increase, two things may happen: 

 (1) larger quantities of apples might be sold later in the year 

 than has been the custom in the past, and as a result, apples 

 will become more available to Mrs. Consumer on a twelve month 

 basis, or (2) more apples from C.A. will be sold earlier in the 

 year than has been the practice in recent years, which may force 

 greater competition on those selling apples from regular storage 

 late in the season. Given a choice, buyers will choose C.A. 

 apples over regularly stored apples - even at a slightly higher 

 premium. (Very likely--both possibilities outlined above will 

 occur) . 



Price Trends 



Generally speaking, apple prices are influenced by two key 

 factors--supply or quantity available and demand, which is the 

 volume of apples consumers will purchase at various price levels. 

 From statistical studies, it is estimated that about 96 per cent 

 of the year-to-year fluctuation in apple prices is explained by 

 variations in the size of the crop and changes in consumer income. 



