Trends and Current Characteristics in 

 the United States Apple Market 



By William H. Drew* 



INTRODUCTION 



This study is concerned with the structure and operation of the market 

 for fresh and processed apples in the United States. Although studies 

 relative to the marketing of apples in specific regions have been made, 

 there is a noticeable absence of industry-wide studies. Some possible 

 explanations for this situation are: (1) Industry and political pressures 

 have forced a major portion of marketing research funds to be applied 

 to studies of those agricultural products which are most important from 

 the standpoint of volume of gross sales. (2) The complexities of vari- 

 ous grades and packages for products such as apples make it difficult 

 to obtain accurate data. ( 3 ) Since major production areas are widely 

 scattered across the country, a single industry-wide study is rather diffi- 

 cult to promote and to carry on. 



The ultimate objectives of this study are to: Develop a model depict- 

 ing the demand relationships for fresh and processed apples in the 

 United States, and to compute, through linear programming techniques, 

 a least cost pattern of interregional shipments of fresh apples in the 

 United States under various sets of initial conditions. 



In order to accomplish these above objectives, as well as to provide 

 additional useful information relative to the market structure for fresh 

 apples in the United States, considerable preliminary research is neces- 

 sary. The following analysis is, therefore, concerned with developing 

 the basic trends which have occurred in the industry, and describing 

 the nature of the present-day market and the institutional factors in- 

 volved. 



Changes in the apple industry themselves point up the need for a 

 comprehensive study of the market. There have recently been significant 

 changes in the size and number of producers, relative importance of 

 specific production areas, size and number of Ijuyers, and the competitive 

 position of apples vs. other fruits. Assessment of these factors is neces- 

 sary to determine future policy actions for the industry as well as to 

 develop economic models of the market. 



During the past 25 years the apple industry of the United States has 

 experienced far-reaching technological and institutional changes. In 

 addition, similar changes that affected the apple industry have occurred 

 in other segments of the economy. The result of any dynamic situation 

 of this type is the evidence of cei-tain trends that can give a general 



* Economist, New Hampshire Agricultural Experiment Station. 



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