in certain grade and varietal group) in any manner that would cause 

 imperfections in the free market. If, however, a grower has a suhstantial 

 advertising program for his "mark," he can theoretically huild up 

 preference for his particular lot of apples. When the output of a particu- 

 lar firm can he identified and is advertised, the condition of homogenity 

 of the product may not be met even though the product is physically 

 homogeneous. This is not the usual case with apple producers. 



An additional possibility for product differentiation in the fresh apple 

 concerns classification by area of origin. This is exemplified by Delicious 

 and Winesap apples produced in the Pacific Northwest which are identi- 

 fied (by package type, label, etc.) and advertised. ^^ 



Earlier price series distinguish only between "Western" apples and 

 "Eastern" apples. In more recent publications concerning farm and 

 wholesale prices, fresh apples are, in some cases, identified as being 

 grown in New England, Western States, New York, and the Appalachian 

 Regions. ^^ This differentiation does imply some lack of homogeneity in 

 the fresh apple product on a nation-wide basis. The degree to which 

 this affects the price-making process depends, in part, upon the origin 

 of the receipts in a given market. If a market's receipts are predomi- 

 nantly from one producing region there will be little effect. In some 

 markets, however, it may be necessary to consider apples from different 

 regions separately; western and eastern apples would be considered 

 different products and homogeneity would be confined to apples (of a 

 certain grade and variety) within each of the above "production area" 

 classes. 



3. Close Contact of Buyers and Sellers 



Reference is made here as to whether complete market information is 

 available to all buyers and sellers. It is difficult to determine whether 

 or not this condition is met since in most every instance there is some 

 lack of contact between all individuals in all markets. In the case of 

 fresh apples, the Department of Agriculture's Crop Reporting Service 

 issues monthly reports on estimates of crop size by states during the 

 summer and fall. In addition, the Department's Agricultural Marketing 

 Service issues monthly reports on cold storage holdings and four "Fruit 

 Situation" reports. At the state level. Agricultural Extension Services 

 and Departments of Agriculture make available information relative to 

 local and distant market conditions. Large city markets issue daily re- 

 ports on receipts by rail and truck. In view of modern methods of coni- 

 nuinication and the great supply of information on market conditions 

 for apples and competing fruits, it seems reasonable to assume that the 

 condition is met. 



4. No Discrimination 



This condition has reference to proneness of individual buyers and 

 sellers to make bilateral agreements relative to the price of a given lot 



13 The advertising is carried out principally by the Washington State Apple Com- 

 mission. 



l*U. S. Department of Agriculture, Agricultural Marketing Service, Fresh Fruit and 

 Vegetable Prices: 1961, Statistical Bulletin No. 307. 



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