Apple growers in the US state of Washington are set to see their exports to China double over the next two years, aided by the expanded market access for apples, as well as higher promotional and marketing spends.

India is to also get its fair share of spoils, with marketing spends by the Washington Apple Commission pegged at around $1 million (nearly ₹6.2 crore) this year.

At the end of November last year, the US government announced that it would use $173 million in funds to increase exports of American agricultural products. Chief among the allocated picks were Washington apples, citrus fruits from Florida, California’s table grapes and the Northwest pear industry.

The Washington Apple Commission (WAC) adopted a $7.4-million export promotions budget last year, higher by 15 per cent from the earlier $6.34 million allocation.

Of the $7.4 million, $5.17 million was from the US Department of Agriculture’s (USDA) Market Access Programme, and $2.2 million from grower assessments.

“Demand has been strong in India,” asserts Keith Sunderlal, CEO of SCS Group, WAC’s India representative. “We would have thought there would be softening of prices, since the US has not been able to ship as many cartons as they would have liked given the West Coast port slowdown that hampered exports,” he said.

High spends

The WAC is to focus its efforts on international marketing, and use the allocated funds to beef up and promote specific varieties and sizes in key export markets. Rebecca Lyons, WAC’s export marketing director, recently told foreign media that the Commission would spend close to $900,000 on promotions in China.

“Our marketing budget in India continues to grow given the strong demand and the potential for further growth in the country. We have good import partners here,” said Sunderlal. “As of now, the marketing budget for India is under a million dollars. We are going to use it on a refocused strategy. An elaborate programme is to play out in 58 cities outside the main metros,” said the CEO.

Markets refocus

WAC is to indulge in promotions in India from mid-March to May this year. “We are moving to Tier-II cities,” he said.

For South India, its biggest market, WAC is to implement a wholesale promotion designed to increase shipments of its Red Delicious apple variety. Stating that WAC had “brought about a revolution with its imported boxes for small retailers,” Sunderlal said the opportunity never existed earlier in India.

“Take Alphonso mangoes. Retailers in India have more confidence buying 3,000 cartons of apples, each with 20 kg, than a carton of mangoes, for many (mangoes) would have gone bad. Investment and returns are not linked, whereas in our case, it is a sure bet,” he added.

Washington apple exports to India reached 1.3 million boxes as of January 31, 2015, double from the year-ago period.

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