Washington state is America's leading apple producer. It is ready for a banner crop after two down years, which could see the national total approach a record 300 million bushels this fall. But the elimination of exports to India, resulting from international trade wars, might put a glut of apples on the domestic market, driving prices down when farms faced with inflationary costs of production can least afford it.
The situation is especially dire in New York with growers dealing with new labor laws that are escalating already high wage rates, possibly forcing some farms out of business.
Christopher Gerlach, U.S. Apple director of analytics, stated recently: "Yes, there will be many small apple operations that shut down and sell out over the next decade. The pace may increase before slowing, given that there are a number of simultaneous pressures such as the high cost of labor, fuel, fertilizer, infrastructure and equipment, declining exports, and intense domestic competition. While those pressures mount, many multigenerational operations will have to reinvest or exit. Given the high cost of debt, many will either choose to sell outright or partner with an equity investor, which has been the trend.”
"The apple industry will survive this but may look a bit different on the other side," he added. "If these pressures don't abate, and even if some do, there will be continued consolidation in the industry. Larger operations will try to take advantage of economies of scale."
Source: farmprogress.com