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The U.S. Apple and Pear Industries: Situation & Outlook

• The United States is a leading apple and pear producing country; an estimated 12 percent of U.S. total apple production is exported annually, compared to 16 percent of the pear crop
• The U.S. apple and pear industries, however, face big challenges in years to come; U.S. apple and pear domestic consumption has reached a plateau; increased competition in world markets has encouraged more planting and production of new varieties; phytosanitary and technical barriers to trade are hampering the expansion of apple and pear trade
• This presentation focuses on the characteristics of the apple and pear industries in the United States and their export performance
• We will look at production, varieties, and export performance
• Finally, we will review the world apple and pear situation and the U.S. main competitors overseas

Fig.1
The Bulk of the U.S. Apple and Pear Crops
is Concentrated in the Northwest

• Climate and ecological conditions make the western United States the ideal region for deciduous fruit production; the region’s volcanic ash soil and dessert climate perfectly suits modern high production growing methods
• Washington is the largest apple producing state, accounting for about half of the total U.S. annual crop; New York, California, and Michigan account for about 30 percent
• Over 50 percent of U.S. total apple production is for the fresh market. A higher share of U.S. apples produced in eastern states are destined to the processing sector (e.g.,canned, juices, ciders); apples from the west, except California, go mainly to the fresh domestic and export markets
• Pear production is concentrated in Washington (about 40%), California (about 30%), and Oregon (about 25%); Bartlett varieties account for more than half of the total western pear crop; Bartlett pears (a summer variety) are primarily used for canning, although some reach the fresh market, especially early in the season

Fig.2
U.S. Pear Production Has Plateaued;
Apple Production is Flattening

• U.S. pear production in 1997/98 totaled 947,102 tons, 27 percent above last season’s output and close to the 1994/95 record of 949,052 tons; pear production in 1998/99 is forecast at 833,105, down 12 percent
• Total U.S. pear production has averaged about 850,000 tons in the last 10 years;
• Apple production in the United States is also flattening; output in 1997/98 totaled 4.7 million tons, the same as the 10-year average; apple production in 1998/99 is forecast to increase 9 percent to 5.1 million tons
• The removal of old orchards and the planting of new varieties have maintained the level of apple and pear production in the United States; particularly in the case of apples, producers in Washington state instead of replanting old orchards are moving their orchards to the east into the Central Columbia River Basin

Fig.3
Red and Golden Delicious Varieties Account
for the Bulk of U.S. Apple Production

• Traditionally, Red and Golden Delicious apples have been the main varieties produced in the United States; Red Delicious account for close to 40 percent while Golden Delicious account for about 15 percent
• In recent years, increased domestic and foreign demand for other varieties, such as Fuji and Gala, have resulted in more production of these varieties
• For example, Fuji and Gala varieties each accounted for 2 percent of total apple production in 1993/94 compared to 6 percent and 4 percent, respectively, in 1997/98
• More domestic demand and increased competition in world markets will continue to encourage more planting and production of new apple varieties in the United States

Fig.4
Bartletts and Anjou Varieties Account
for the Bulk of U.S. Pear Production

• California (with an average of 250,000 tons annually) accounts for half of the U.S. Bartlett pear production
• A higher percentage of U.S. Bartlett pears are directed to the canning industry
• Anjou and other winter pear varieties are intended mostly for the fresh domestic and export markets

Fig.5
Apple and Pear Production is Extremely
Important to the U.S. Farm Income

• U.S. total fruit production in 1997/98 was valued at $10.7 billion
• Apples are the third largest fruit industry, after grapes and oranges, in the United States; the value of the U.S. 1997/98 apple crop is estimated at $1.6 billion, unchanged from 1996/97
• Pears are the sixth largest U.S. fruit industry; the1997/98 production value of the U.S. pear crop is estimated at $289 million, compared to $308 million last season

Fig.6
Exports Have Become Critical to the
Success of the U.S. Apple Industry

• Although apple production has not changed much in recent years, more U.S. apples are now going into exports (about 12 percent of total production) compared to several years ago (6 percent of total production)
• The completion of multilateral and bilateral trade agreements, combined with a plateaued domestic demand and more foreign promotion efforts, have boosted U.S. apple exports in recent years
• Continued supplies of good quality fruit, strong demand from leading customers, and market promotion efforts will continue to develop U.S. apple export markets

Fig.7
Exports are Also Very important to the Pear Industry

• The share of pear exports as a percentage of total production has increased dramatically in recent years; from 5 percent in 1988/89 to more than 15 percent in 1997/98
• Just as with the apple industry, the completion of trade agreements, combined with a plateau in domestic demand and more promotion efforts, have boosted U.S. pear exports
• Continued supplies of good quality fruit, strong demand from leading customers, and market promotion efforts should continue to boost U.S. pear sales in foreign markets

Fig.8
Taiwan, Canada, and Mexico Continue to be
Major Markets for U.S. Apple Exports

• U.S. apple exports in 1997/98 totaled 569,285 tons, 15 percent below last season’s shipments
• Apple exports in 1997/98 were adversely affected by the stronger U.S. dollar vis-a-vis other countries’ currencies (particularly in Southeast Asian countries); a smaller Washington state apple crop (primarily for export); reduced supplies of good quality fruit; and Mexico’s 101 percent antidumping duty on U.S. Red and Golden Delicious apples, which was imposed in September 1997 and subsequently lifted in March 1998
• Anticipated greater supplies of good quality fruit in 1998/99 will help promote U.S. apple exports the coming season; however, the stronger dollar relative to other currencies, particularly in Southeast and East Asian countries, will likely hamper export prospects in these markets in 1998/99
• Washington State is the largest U.S. apple exporting state, selling about a third of its crop to international markets; Mexico, Taiwan, Indonesia, and Canada represent some of Washington State’s biggest customers

Fig.9
U.S. Pear Exports Reached a Record in MY 1997/98

• U.S. pear exports in 1997/98 reached a record 164,731 tons, 38 percent above last season’s shipments and 15 percent above the previous record in 1995/96
• Ample supplies of good quality fruit at more competitive prices, combined with smaller exportable supplies from the European Union (EU), boosted U.S. pear exports in 1997/98
• Canada and Mexico together account for over half of U.S. pear shipments; the EU, Brazil, and Taiwan are also important markets for U.S. pears
• Although strong demand for U.S. pears is expected to continue in major customers, such as Canada, Mexico, and Brazil, Asia’s financial crisis will likely hamper shipments to many markets in Southeast and East Asian countries in 1998/99

Fig.10
The EU and Southern Hemisphere Countries Are
Major Competitors for U.S. Apple Exports

• The EU (mostly France and Italy) accounts for about 45 percent of world apple exports; the United States, Chile, New Zealand, and Argentina together account for 35 percent
• The world market share for U.S. apple exports grew from 7 percent in 1983/84 to an all-time high of 16 percent in 1994/95
• Although declining to 13 percent in 1997/98, this trend has clearly been up overall
• Market share percentages of the United States’ top competitors remained practically flat for the same period
• Most EU apple exports go into other European countries; U.S., Chilean, and New Zealand apples compete strongly in Asian markets

Fig.11
U.S. Pear Exports Face Stiff Competition from
the EU, Argentina, Chile, and South Africa

• The EU’s pear export share has decreased from about 60 percent in 1983/84 to an estimated 40 percent in 1997/98
• Argentina, the United States, and Chile have doubled their share of world pear exports in the same period, while South Africa’s share remained practically flat
• Just as with its apple shipments, most EU pears go into other European countries; Argentine, U.S., and Chilean pears compete in certain South American countries, such as Brazil

Fig.12
China, the EU, and the United States Account
for the Bulk of World Apple Production ............

• China is the world’s leading apple producing country with an estimated total production of 18 million tons in 1997/98
• China’s apple production is mostly directed to the fresh and processing domestic markets
• France, Italy, and Spain are the major apple producers in the EU
• The 1997/98 total U.S. apple crop reached 4.7 million tons, unchanged from the 1996/97 harvest; the Washington State apple crop, however, was down 9 percent; total U.S. apple production in 1998/99 is forecast at 5.1 million tons

Fig.13
......... However, China’s Share of World Apple
Production Has Increased Dramatically

• In recent years, China has bolstered its position as a major world apple producer
• Chinese apples are estimated to account for 36 percent of world production in 1997/98, compared to 25 percent five years ago
• China’s fresh apple exports are currently hampered by the lack of adequate infrastructure; however, shipments have been increasing steadily in recent years
• Overseas investments are occurring in China’s apple industry, mostly in the juice processing sector

Fig.14
The EU and the United States Account
for the Bulk of World Pear Production

• The EU and the United States normally account for about 60 percent of world pear production
• The United States is the single largest pear producing country; Italy, Spain, and France are the major producers in the EU
• Most of the EU pear crop is directed to the fresh domestic and export markets; a majority of the U.S. pear crop is processed

Last modified: Tuesday, May 08, 2001