Processing Apples

1
Processing Apples
A Global Trend

• Suzanne Thornsbury and Maria-Paz Gonzalez
• Agriculture Economics
• Michigan State University
• February 2006

2
Introduction
In global commodity markets MANY produce the same
product
The market gets saturated and the price decreases.
Value-added products can make a difference in
competitive markets
Due to Originality, Quality, Convenience and
Indulgence Can compete without being the low cost
producer Can target specific markets and specific
needs
But a CHANGE has to take place..
But a CHANGE has to take place..
3
Competition
Larger Apple Producing Countries Around the World
Source FAO Stats, 2004
4
(No Transcript)
5
Global Apple Exports
Source USDA/NASS, 2005
1992 - 1993
2001 - 2003
6
Concentrate Juice
Concentrate Juice
Source FAO Stats, 2004
7
(No Transcript)
8
Bagged Apples
9
Apples Products
10
U.S. Apple Consumption
11
Apple Production
12
Strategy

• Must be a low cost product

13
Good News

• Processed products are changing !

14
Apples Good for Health
Endorsing fruit consumption for better health
One apple a day keeps the Doctor away!
Apples are include in all Diets and weight loss
programs Weight Watchers, Atkins, South Beach,
etc..
15
New Products
New Products
2.99
44.00
4.50
16
New Products
New Products
3.50 each
1.99
5.00
1.99
3.00
17
New Products
New Products
2.99
1.99 and 3.99
Aromatized Sugar
4.50
Apple tea for Babies
3.00
18
Fast Food Concept
Fast Food
http//www.mcdonalds.com/usa/eat/features/fruitnwa
lnut.html
19
Blends, Mixes, Packaging,
Portion control Portability Fun Weight friendly
Value-added Products
Closer to fresh
20
Value-added
An example of how apples can become a product
with more value!
21
Major Food Trends
Fortified/ Vitamin Enriched Au Naturel
Naturally Healthy Portion Weight Control
Nutrition Rich Anti Aging Self Medicated
Clean Organic Sustainability Contaminant
free Quality assurance Kosher Temper-Proof
Product Performance Individualism Target
specific Comfort Sensory Ethnic
Indulgence Premium
On-the-Go Portability Single Use No Fuss/
No Muss Expedient One-Handed functionality
Functional Packaging
22
Strategy

• Must Be One Step Ahead in Innovation
• Dont Have to Be Low Cost

23
Conclusions

• Always be ahead in innovation
• Value-Added markets are more competitive than
  price markets
• Differentiation really makes a difference
• Innovation is key for global markets
• Know what consumers want and Deliver!

24

• Mans Mind, Stretched by a NEW IDEA never goes
  back to its original dimensions
• Oliver Wendell Holmes