If these mergers were indeed driven by rivals' fear of Wal Mart's impending dominance of their industry, as it is often believed, many of the practices that concern them the most will disappear as others mimic the Wal Mart model. Economics makes strage bedfellows. Of the major crops discussed, apples, grapes and oranges received extra attention. Domestic consumption of fresh apples is stagnant and export volumes have declined since the Asian economic crises. The implications of these two situations for U.S. grower and retail prices were explored.
Grapes seem to have a bright market outlook.
The demand for both fresh and processing grapes is increasing, suggesting a need for increased domestic production. In December 1998, California experienced a hard freeze that caused extensive damage to the orange crop. Since over 70 percent of California's oranges are sold fresh, a reduction in the state's crop is expected to affect fresh orange prices in 1999 and beyond. Like other analysts, we have included the effects of a stagnant domestic fresh consumption and a soft export market to slow production. We, however, believe that a more lucrative juice market will prevent sharp decline in fresh grower and retail prices.