Most miss premium prices for new apples

As more and more of the so-called "new" varieties of apples move into the mass market category, the key for growers and packers is to grow what they grow best, Dr. Des O'Rourke, Washington State University (WSU) agricultural economist, told members of the International Dwarf Fruit Tree Association at their annual meeting in Pasco, Washington.

"Grow the variety that does best in your conditions," he said, emphasizing the need for good yields and good, packable quality.

When Granny Smith came onto the market, the innovative growers who were the first to plant it received some tremendous price premiums, O'Rourke recalled.

But he estimates that only about 2.5% of Washington's apple growers fall into the "innovator" category, and another 10 to 12% can be classed as "early adopters." Most growers are slower to get into new varieties, and a proportion of them will eventually do so when the varieties are no longer new. He said there's a tremendous resistance to change within the world's fruit industry. In 1997, 80% of the apples produced in the world were traditional varieties.

Consumers' interest in new varieties follows the same pattern.

A good variety is one where consumer adoption runs ahead of producer adoption. A bad variety is adopted more quickly by producers than consumers, O'Rourke explained.

"This is the key for any variety you're looking at," he told the meeting. "It's very easy for you to focus on the producing side. But unless the consumers come into the market at the same pace as supply comes in, you're not going to get a premium on the new variety. Then, the variety is just a replacement for another variety. It's not enhancing your business."

O'Rourke, who heads WSU's International Marketing Program for Agricultural Commodities and Trade (IMPACT), said, based on trends so far, it appears that the state can sell six million boxes of Gala apples profitably. That's almost two million boxes more than the current crop. However, he expects production to jump to 12 million packed boxes by the year 2005.

Fuji production is likely to leap to 12 million boxes by 2005, up from seven million this season. Pink Lady production worldwide will grow to six million boxes worldwide by 2005, he estimated.

Consumption of new apple varieties has been increasing because consumers today want more choices. And, for the past couple of decades, retailers have been expanding their produce sections. But O'Rourke said apple producers should not expect shelf space to continue to expand, and this could be a problem in marketing new varieties.

The industry as a whole needs to do some major rethinking about marketing of Fuji, Gala, and Braeburn apples, he suggested. So far, most of the quality fruit in those varieties has been exported, and there has been no major marketing effort in the United States.

He said wholesalers and retailers are not accurately reflecting the preference of consumers when it comes to varieties. Their only concern is the markup they get on apples.

"Any consumer education that will be done will have to be done by the fruit industry," O'Rourke said.

Copyright 1998, Good Fruit Grower,105 South 18th Street, Suite 217, Yakima, Washington 98901
Voice (509) 575-2315, (800) 487-9946, Fax (509) 453-4880

Most miss premium prices for new apples

SECURE SITE ORDERING