Table A.— Apples, Washington Red Delicious: Season average prices, spreads, costs, and returns. New York 



City, 1960761-1971/72 1 













Shipping point price 















Shipping 



point- 



(fob) (returns to 



Packing storage 



Grower 



returns 





Retail 



Retail 



retail spread 



grower and packer) 



and selling cost 3 







Season 



price per 

 pound 



value per 

 carton 2 

















Percentage 





Percentage 





Percentage 





Percentage 









Per carton 



of retail 

 value 



Per carton 



of retail 

 value 



Per carton 



of retail 

 value 



Per carton 



of retail 

 value 





Cents 



Dollars 



Dollars 



Percent 



Dollars Percent 



Dollars Percent 



Dollars 



Percent 



1960/61 . . . 



23.4 



9.44 



5.38 



57 



4.06 43 



1.75 19 



2.31 



24 



1961/62 . . . 



23.6 



9.50 



5.13 



54 



4.37 46 



1.74 18 



2.63 



28 



1962/63 . . . 



23.0 



9.26 



5.41 



58 



3.85 42 



1.74 19 



2.11 



23 



1963/64 . . . 



21.1 



8.51 



5.15 



61 



3.36 39 



1.74 20 



1.62 



19 



1964/65 . . . 



24.9 



10.03 



5.93 



59 



4.10 41 



1.78 18 



2.32 



23 



1965/66 . . . 



25.8 



10.39 



5.77 



56 



4.62 44 



1.79 17 



2.83 



27 



1966/67 . . . 



26.5 



10.67 



6.21 



58 



4.46 42 



1.80 17 



2.66 



25 



1967/68 . . . 



29.6 



11.93 



5.79 



49 



6.14 51 



1.82 15 



4.32 



36 



1968/69 . . . 



34.0 



13.71 



6.91 



50 



6.80 50 



2.29 17 



4.51 



33 



1969/70 . . . 



29.7 



11.96 



7.70 



64 



4.26 36 



2.34 20 



1.92 



16 



1970/71 . . . 



33.8 



13.64 



7.60 



56 



6.04 44 



2.34 17 



3.70 



27 



1971/72 . . . 



34.7 



13.99 



7.62 



54 



6.37 46 



2.46 18 



3.91 



28 



1 Combination Fancy and Extra Fancy, size 138 or larger, 42 

 pounds net weight per tray-packed carton. Season: October 

 through April, 1960/61 through 1966/67; October through June, 

 1967/68 through 1971/72. 2 Returns to retailer for salable apples 



(4-percent allowance for loss incurred during marketing process). 

 3 Based on f.o.b. packed price minus equivalent packing-plant- 

 door returns for all Washington apples used fresh. 



increased 69 percent ($1.60) (Table A and bottom 

 portion Figure A). The shipping point-retail spread 

 (payment for marketing services performed beyond the 

 shipping point) increased 42 percent. Packing, storage, 

 and selling costs at the shipping point increased 41 

 percent. 



A simple trend line was fitted to the data contained 

 in Table A. Results indicated that the retail price of 

 Washington State Red Delicious sold in New York City 

 increased an average of 48 cents per carton per year in 

 1960/61-1971/72. During the same period the shipping 

 point-retail spread increased 25 cents per carton per 

 year; shipping point prices went up 23 cents; packing, 

 storage, and selling costs rose 7 cents; and grower returns 

 on the average rose 16 cents per carton. 



Also, the market shares or percentage of retail value 

 going to growers and other market factors remained 

 almost constant over the period. If anything, the 

 grower's share increased slightly. However, their returns 

 are highly variable depending on the supply of apples 

 available. 



Comparable prices and spreads for Eastern Red 

 Delicious and Eastern Mcintosh were available for only 

 the last 5 season, and for Midwestern Jonathans just 2 

 seasons later were available. Season average retail prices 

 of Eastern Red Delicious and bagged Eastern Mcintosh 

 were 7 to 11 cents per pound lower than Washington 

 Red Delicious in New York City during the 5 seasons 

 (Tables A and B). Seasonal retail price changes were also 

 smaller for both Eastern Red Delicious and Mcintosh. 

 The shipping point-retail spread per pound was 

 considerably less for Eastern Red Delicious than for the 

 other 2 varieties. The shipping point-retail spread was 

 less than one-half the retail value of Eastern Red 



Delicious and more than one-half for both Washington 

 Red Delicious and Eastern Mcintosh in most seasons. 



Packing, storage, and selling costs were lower in the 

 East than in Washington State each season. Retail prices 

 of Eastern Red Delicious were lower than for 

 Washington Red Delicious. So despite lower packing, 

 storage, and selling costs and a smaller shipping 

 point-retail spread, grower returns per carton for Eastern 

 Red Delicious were also smaller in 4 of the 5 seasons. 

 However, growers of Eastern Red Delicious received a 

 larger percentage of the retail value than did growers of 

 Washington Red Delicious in all 5 seasons. Grower 

 returns for Eastern Mcintosh decreased each season and 

 represented only 9 percent of their retail value in 

 1971/72. Michigan growers of bagged Jonathans, sold in 

 Chicago, received 17 percent of the retail value in both 

 of the last 2 seasons. 



Applesauce 



Prices and margins for applesauce were available for 

 only the last 6 seasons. The retail price of a No. 303 can 

 of applesauce averaged 21.4 cents in Pittsburgh in 

 1971/72, 4.6 cents higher than in 1965/66. The retail 

 value of a case of 24 cans increased from $4.04 to $5.14 

 (Figure B and Table C). Retail prices increased each 

 year, with larger increases occurring in 1967/68 and 

 1968/69. Most of the retail price increases were taken by 

 marketing agencies as larger marketing margins. The 

 return to Eastern growers for processing apples in a case 

 of applesauce was only 78 cents in 1965/66 and only 74 

 cents in 1971/72. Growers received slightly more in 

 intervening years, exceeding $1.00 per case in 1967/68 

 and 1968/69. Growers received almost one-fourth of the 

 retail value of canned applesauce in those 2 years, up 



14 TFS-185, NOVEMBER 1972 



