The Southern District of the state is more traditional in it approach to apple production. While apple farmers have increased direct marketing, a large volume of fruit is sold through wholesale outlets, much of this volume to out of state fruit processors. Very few apple growers in the southern districts grow exclusively or even predominantly apples. Most produce other crops mainly peaches. Peach growers plant apples on sites and soils unsuited for peaches. Consequently the blocks are larger trees on more vigorous rootstocks without irrigation and less intense management. Thus a high percentage of this fruit is not blemish free, or of small size and winds up being processed. There are, however, many of these blocks that are grow exclusively for the processing market.

An analysis of recent price trends may better explain the decline in the southern districts of the state where many apples were and continue to be wholesaled.

Acreage

Yield per acre

Total production

Average price per lb.

Fresh Price/lb.

Processed Price/lb.

% NJ Apples Processed

4100<

18,300 pounds

75 million pounds

0.16

0.24

072

47%

4100<

4100<

14,600 pounds15,900 pounds

60 million pounds

0.15

0.22

096

52%

65 million pounds

0.14

0.20

.085

51%

The apple crop is heavier in New Jersey in 1998 than 1997. Movement at farm markets has been good, however some that formerly processed apples into juice have gone out of business. Due to recent requirements on posting warning labels on apple cider, sales have declined by some retailing and most marketing apple cider on the wholesale market.

Almost 70% of the apple crop in Gloucester County is sold for processing. Wholesale price for juice apples has been low somewhere between .028 cents and .045 cents per pound. The United States market is flooded with apple juice concentrate from foreign countries. China has increased the volume of apple juice concentrate 997 % through September over last year with a corresponding 53 % decline in price. Hungary concentrate sales have increased 254% the past year through September but its prices are down 53%. Apple juice concentrate in 1996 was $9.50 per gallon, today its $3.50 per gallon. These factors have driven down the price of apples for juice.

The price for juice apples is foundation of all apple prices. Prices for apple for peeling and sauce are steady but declining as apple stockpile. Most of the New Jersey apples grown for peeling and sauce are shipped to processors in Virginia, Pennsylvania and New York.

The Washington State Apple industry has a large crop (over 5 billion pounds). Grower are assessed almost 32 cents per bushel to promote their apples. These apples are being promoted heavily in eastern markets competing with New Jersey apples. Because of poor economic conditions in the Far east and throughout the world Washington exports and those of all states are down. While not always reflected in the supermarket pricing structure, fresh wholesale apple prices are low and movement is stagnant in 1998.