The July issue of publisher Belrose's World Apple Report concedes that at individual company level, the down-scaling necessary for the apple industry to survive after rapid expansion in the 1990s can increase profitability. 'However, at the industry level downsizing is much more difficult to manage,' finds the report. It warns that industry goals are less precise and more complex than those of individual companies and often the data required to make important decisions is not available. There is also the danger that the industry might lose its experienced and knowledgeable leaders.

But one of the biggest dangers is with declining numbers, industry activities based on numbers of players for revenue may also fall. Key areas which may lose out could be research, promotion, lobbying and logistics.

'There is an urgent need for the different industry organisations at state, provincial and national levels to at least communicate and share ideas as they approach downsizing for their own organisations,' warns the report.

The US-based publisher also suggests in its study that industry organisations across national borders should co-ordinate their efforts. 'At the very least, industry organisations need to work together to ensure that their downsizing efforts are most beneficial to the whole industry and do not contribute to making the situation worse,'' it concludes.

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