Competition Between Fresh and Processed Apples 



Since the only possible method of storing apples from one year to 

 another is in the processed form, the processing market is relatively 

 sensitive to price changes and buys large quantities in surplus years for 

 storage. The processing of apples is concentrated in the Appalachia 

 region, New York, and California, which together account for almost 

 90 percent of the total pack. Even in these areas, where processing out- 

 lets are available, the prospect of diverting a portion of the fresh crop 

 to processing diminishes rapidly as the marketing season advances. Since 

 it is not economically feasible to incur the cost of placing processed 

 apples in refrigerated warehouses, 85 percent of the pack is usually 

 processed before December 1. 



Competition Between Apples and Other Products 



Although many other fruits are available as substitutes, citrus pro- 

 ducts apparently offer the most serious threat on the apple market. As 

 per capita consumption of apples has been falling steadily, the con- 

 sumption rate for citrus fruits has been rising. Improvements in methods 

 of production and handling have placed citrus products in markets at 

 prices which are becoming increasingly competitive with apples. The 

 fact that citrus fruits have the same marketing season as fresh apples is 

 further evidence that they are the prime competitor. 



