Factors Affecting Prices of Apples
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When a farmer decides whether or not to plant apple trees he is concerned with the long-term
outlook covering the next 10 or P20 years. When he sells his apples he is concerned with the
immediate outlook covering the period from 3 to 9 months after his crop is harvested. Most
of the research on demand for apples has attempted to explain variations in annual average
prices. It gives no indication of the long-term outlook. Nor does it give much information
about probable changes in prices during the marketing season. When the apple grower decides
how much to store and when to take apples out of storage he needs a more detailed analysis of
the factors that affect apple prices at different periods during the year. The study here reported
is an attempt to provide the kind of analysis that can be used for this purpose.