US Washington state fruit marketing body the Washington Apple Commission (WAC) may trim its promotional spending to just five markets if it loses federal funding after next year, reports Capital Press.
India, Mexico, China, Indonesia and the Middle East have been identified as top priorities for export promotions if Market Access Program (MAP) money dries up. Promotions in Canada, Europe, Russia, South and Central America, Hong Kong, Taiwan, Malaysia, Singapore, Thailand and Vietnam may be scrapped.
"South East Asia is where we see the growth," WAC president Todd Fryhover is reported to have said.
WAC has identified India, China and Indonesia as markets with particularly strong growth potential, thanks to their high populations and growing middle class.
India surpassed Taiwan as Washington's third apple export market earlier this year. Mexico retained its number-two slot, after Canada.
Australia, Iran and Iraq are possible future markets, Fryhover said.
Reductions of US$1.2tn in federal spending next year could mean 7 to 10 per cent cuts in MAP dollars, Fryhover warned WAC members last week (December 2). Though it is most likely the commission's MAP money will decrease in 2013, Fryhover said.
MAP money accounts for 70-75 per cent of the commission's budget.
"We can probably pull several hundred thousands of dollars out of Canada and Europe and put it into our growth markets of Asia, regardless of MAP," Fryhover said. "I'm willing to push that envelope. I'd reather put our money where the growth is."
No comments yet