price relationships became advantageous. Thus, relative to the North 

 Atlantic Region, interregional competition is not so severe as intra- 

 regional competition. New England, New York and New Jersey pro- 

 ducers are all competing strongly on the large northeastern metropolitan 

 markets with apples that can go into fresh or processing outlets. ^^ Thus, 

 when there is a short crop, apples that would normally go into process- 

 ing outlets move into the fresh market when the price of fresh apples 

 rises above a certain level. The price must, however, remain high enough 

 (for certain varieties) to attract those fresh apples needed from the 

 Western Region. 



Source: See Table 7, p. 17. 



* The cities included are: 

 Western Region: Los Angeles, Seattle, Portland, San Francisco, and Denver. 

 Central Region: Ft. Worth, Dallas, New Orleans, Jackson, Miss., Birmingham, 

 Minneapolis, Cleveland, St. Louis, Kansas City, Cincinnati, Detroit, and Chicago. 

 A'. Atlantic Region: Philadelphia, Pittsburg, New York, and Boston. 

 S. Atlantic Region: Atlanta, Washington, D. C, and Baltimore. 



The South Atlantic Region's markets apparently come closest to per- 

 fect competition with all regions supplying some apples. As shown in 

 Table 9, only 40 percent of the apples produced in this region go through 

 fresh marketing channels. Although this results in a total deficit of 

 fresh apples in the region, the situation is quite stable. Many processin:^ 

 plants have been built in the Appalachian area and production practice? 

 are adapted to processing outlets. Within this institutional framework 

 growers are not very willing to shift to fresh market outlets. Thus, on 

 the large city markets listed for this region, the North Atlantic and 

 Western Regions supply over one-half of the fresh apples while the 

 remaining portion come from within the region. 



Local vs. Distant Producers 



In deficit areas, which depend on distant shippers for a sizeable por- 

 tion of apples, local producers have a theoretical advantage. They do 

 not incur the high transportation costs which are attached to that por- 

 tion of the crop moving into the region. This would indicate abnormal 

 profits for the local producer. If such were the case, the present situ- 



1^ As will be discussed later, the quantity of apples going into fresh outlets tends 

 to remain stable from year to year relative to the quantity going into processed use. 



27 



