Nancy Foster

President, U.S. Apple Association

Industry Profile

The United States has approximately 7,500 apple producers that grow nearly 100 varieties of apples in 36 states. The top six apple-producing states are Washington, New York, Michigan, Pennsylvania, California and Virginia. The largest U.S. apple crop on record, of 277.3 million cartons, was harvested in 1998.

The United States is the world's second-largest producer of apples, behind the People's Republic of China. Turkey, Italy, and Poland complete the list of the world's top apple-producing countries.

Approximately one out of every four apples harvested in the United States is exported. Exports have been increasing dramatically over the past decade, due to economic growth and increased disposable income in developing countries, and substantial industry export promotion efforts. Leading export markets include Mexico, Taiwan, Canada and Hong Kong.

The U.S. apple industry has long-prided itself on its independence from the government. However, growers have suffered estimated losses of $1.7 billion over the past five years, including an estimated $700 million during 2001, according to U.S. Department of Agriculture statistics. Unfairly priced apple juice concentrate imports, increasing regulatory costs, stagnant domestic consumption, food retail consolidation, subsidized foreign competition, diminished export demand and global overproduction are all to blame. To soften the economic blow, the industry received $100 million in direct federal assistance as part of the 2001 agricultural appropriations bill for losses sustained marketing the 1998 or 1999 crop. U.S. growers were granted $75 million in assistance as part of the 2002 agricultural appropriations bill, and $94 million in direct assistance as part of the farm bill to help compensate growers for losses sustained marketing the 2000 crop.

The economic challenges confronting the U.S. apple industry are considerable, however, the industry remains optimistic that market forces causing structural changes within the industry will return the industry to profitability

:: close::