The US apple industry has faced challenging times. It has been knocked by stagnant domestic demand, mounting competition (especially from China) and uneconomic prices on the marketplace at large.
This has been reflected in a fall in foreign exchange earnings which, according to the United States Department of Agriculture, amounted to US$347.7 million last year.
However, as the 2004/05 season gets underway expectations are high with a reversal of fortunes in the offing. Favourable weather has resulted in one of the earliest starts while yields are above average. Indeed output is up by eight per cent to an estimated 221.6m cartons, with Washington alone showing a 16 per cent rise to 123.8m, the equivalent of a 56 per cent share overall. Additional impetus is coming from a new focus on organics and a fine-honing of varietal mix - the latter aimed at improving both sales and returns.
Already these initiatives are furthering export capability. Gains are being made in both established markets and new. This has very much been the case in the UK, which has witnessed appreciable growth in US imports. Neil Gordon of the US Apple Export Council explains: “The UK is one of, if not the most important export market for apples from eastern US which, in particular, includes New York state, the New England states and Michigan. In fact sales there have been increasing year-on-year over the last three years.
“Nevertheless, in spite of what has been achieved, it has not been problem-free. The market can be seriously hindered by currency impacts. When the dollar is strong, as it was in the 1990s, there is a negative effect on trade as growers earn less for their fruit. More recently though the pound has strengthened against the dollar which has once again made the UK more attractive to US suppliers.”
Allied to this has been an improvement in varietal offer to one that is more tailored to specific market requirements. With this in mind the complexion of US production has changed. For example, Gala has gained in stature virtually every year and now ranks third in the production league table. In 2004/05 alone, output is forecast to reach a record 23.3m boxes - 24 per cent up on the previous season and 47 per cent on that of 2000/01. And further growth is forecast as new plantings reach full cropping status, a position bolstered by improved crop husbandry and tree management.
In parallel with this, there has been ongoing expansion in exports, especially to the UK. To some extent this is due to the variety’s ability to fill a gap in the supply calendar between the end of the northern hemisphere season and before southern hemisphere fruit comes on stream.
Another winner has been Fuji. Indeed output has risen by over 20 per cent since the start of the decade to the extent that the variety now accounts for 10 per cent of the US apple harvest. Increasingly fruit is earmarked for export, especially to Asia and sophisticated markets in the west. Equally, Braeburn has achieved star status, a trend forecast to continue.
Similarly, a number of speciality varieties are fast attracting a following. Amongst these is Ginger Gold, a flavoursome early season cropper that doesn’t brown when sliced. As a result, it is seen as a good choice for snacks, lunch boxes and salads. It has already attracted much interest amongst British multiples.
Honeycrisp, Cameo and Pink Lady have also continued on the ascent - the latter having the potential to challenge the positioning held by the industry’s mainstays, albeit in the long term. This position has been backed by new investment in plantings, especially in Washington and Yakima.
At the same time, there have been successes on the culinary front. Crispin and Rome Beauty in particular have gained market share in the UK, especially in seasons when Bramley is short.
In spite of these developments traditional reds continue to dominate the US portfolio. This is well illustrated with Red Delicious, the leading variety in production terms and representing 27 per cent of national output - projected at 60.9m cartons in 2004.
Likewise McIntosh has maintained its popularity. As such, volumes have remained fairly consistent over the years at around the 10m carton mark, 80 per cent of which are sourced from eastern states. In fact, McIntosh and Red Delicious remain prime movers in the UK, especially in Scotland, northern England and Northern Ireland, and arrive at a time when reds generally are in short supply.
Empire has also retained its supporters. As Gordon adds: “By far the most important variety for the UK is Empire, a McIntosh and Red Delicious cross, raised in New York state. More recently, its ranking has been strengthened by vastly improved storage techniques which enable the variety to be kept in prime condition virtually all year. The peak season remains October to June however.”
Similarly, Granny Smith has maintained its appeal. As a result volumes have continued on an even keel over the last five years, with 18.5m cartons the annual average.
Conversely, Golden Delicious has come under pressure. This is borne out by US Apple Association figures, which show a steady decline since the late 90s. Today it accounts for 13 per cent of the harvest overall - the equivalent of 28.1m cartons in the season under review - though it is still the second largest variety by volume.
Jonathan, too, has waned in significance, as have Gravenstein and Newtown. Winesap has been another casualty, with production having dropped from 1m cartons in the late 90s to 545,000 cartons this year.
However, these varieties are generally absorbed by the domestic market rather than channelled for export.
These trends have been mirrored on a state-by-state basis. Using Washington as an example, emphasis has switched from Golden, Grannies and reds (first planted in the 1920s) to a new generation of bicolours and related types.
These varieties are also forming the backbone of Washington’s organic production. At present, they span 10,000 acres and account for two-thirds of total US organic acreage, with the state producing more than any other apple-producing region in the world.
Given this background there has been expansion in the volume shipped from the state. In fact total sendings have risen 12-fold over the last six years to stand at 3.5m boxes during the 2003/04 season. Within this the UK has played an increasingly important role. Washington has been able to satisfy the most demanding retail specifications and achieve excellent sales growth year-on-year.
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