August Outlook Report: Fruit and Veg

- The United States (US) maintains a stable price level of fresh apples in what seems to be a perfect balance between supply and demand. Conversely, China is expected to achieve higher wholesale prices of fresh apples in August. In India, adverse weather continues to affect apple production, while increased demand is soaring prices. Poland expects various fresh apple CY 2023 results depending on the apple variety.
- Ecuador's banana export grew in Q1-23, only hampered by low demand from Türkiye. In contrast, Ecuador's agreement with China, aimed at canceling tariffs for bananas and other products, is put on hold due to the political situation in the country. Due to higher input and transportation expenses, Costa Rica will encounter production limits in 2023, reducing fruit quality and a 14.56% MoM drop in fresh banana prices. Despite weaker demand for bananas in Europe due to the holiday season, the wholesale price drop was marginal. China continues to increase suppliers of fresh bananas, and increased supply is pushing prices down in July.
- High temperatures and dryness have hampered fresh vegetable output in Spain, particularly pepper production, hiking the price in July. In the US, a surge in demand and reliance on import volumes of fresh bell peppers pushed prices up, and this trend is expected to intensify in August. China’s abundant supply of fresh peppers pressured prices down in July, while in Türkiye, prices are expected to continue a stable tendency in August.
- Thailand's durian price stabilized in July, with satisfactory fruit quality and good demand from China. Taiwan durian prices recovered in July, driven by increased demand, despite abundant supply from Thailand and Vietnam. A behemoth of durian markets, China, is improving domestic production while at the same time imports from Vietnam and Thailand continue to rise.
- Mexican Hass avocado prices surged in July, reaching USD 3.47/kg, the highest since Sept-22. High temperatures and water scarcity affected the harvest in Mexico as well as the lower avocado volumes from April to July, leading to decreased supply and price support. South African avocado prices increased 1% MoM which indicates a full recovery as supply eases, leading to potential stability in the following months.
- Amidst varying market conditions, mango prices in different regions have shown fluctuations. In the US, Mexican Tommy Atkins prices experienced a slight recovery in mid-July after a fall in June. In India, abundant supply led to a decrease in prices, while in Colombia, the season's end increased prices. Spain saw a sudden spike in Tommy Atkins prices due to reduced local supply and imports from non-European sources, indicating upward price trends.
- Amidst diverse market conditions, onion prices in different regions have experienced fluctuations. In India, prices have recovered after facing a substantial fall caused by an oversupply crisis due to delayed crops. Peru witnessed a decrease in white onion prices as international demand slightly slowed, but overall export volumes grew. In South Africa, yellow onion prices have gradually decreased from a historical high, and Indonesia's red onion prices have fallen after maintaining an upward trend and experiencing increased imports.