There is now one central location where you can find information on AJC import data, cash price reporting and more.  Visit our website at www.mgex.com/ajc.  You can also see previously published issues of AJC Update. 

 

Q:  Why does the industry need an Apple Juice Concentrate (AJC) futures contract?

A:  AJC industry processors and buyers need a better way to manage price risk.  They typically experience large price moves and the forward contracts historically used by the industry have not always worked perfectly.  As an example, when prices move up significantly buyers fear their lower-priced forward contracts might not be honored.  With falling prices processors have difficulty protecting anticipated profit margins on AJC purchases, as buyers have less interest in longer term commitments.  In addition, there are times when buyers cannot get forward contract coverage when they want it.  

Q:  How big is the AJC industry?  What is the worldwide value?

A:  According to the USDA Foreign Agricultural Service, global production was approximately 1.5 million metric tons of AJC in recent years (2006-07, 2007-08; reported in "World Markets and Trade, 2007/08 Global Concentrated Apple Juice").  At current prices of around $11/gallon this equates to about $3.2 billion in value.