The Price of Polish Apples Has Spiked While Traders Experience Difficulties with Export Markets

Published 2022년 4월 29일

The price of Polish apples has risen 10.25% MoM, currently holding at USD 0.39/kg, while export options are declining on the other hand. The Belarusian embargo, the Russia-Ukraine crisis, and significant stocks of unsold apples make exporters and producers worried. Domestic consumption will play an essential role in overcoming this situation. At the same time, exporters are hoping for higher demand from Western EU countries, especially Germany.

Since the beginning of the year, the price of apples in Poland has recovered and is showing growth. Prices increased from USD 0.35/kg in February 2022 to USD 0.39/kg in March 2022, over a 10.25% MoM increase. The ban against Belarus meant the loss of a very important market.

For MY 2020, Poland’s exports represented 4.4% of world exports for fresh apples, with Belarus and Egypt as major trading partners. Belarus accounted for a 15.3% share, with a total export value of USD 51.91M. Egypt’s share for MY 2020 was smaller, 12%, and the export value was USD 40.72M. For 2022, estimations are that some 200,000mt of fresh apples remained in storage, unplaced on the Belarusian market. With the embargo and the Russia-Ukraine conflict came problems with the transportation of products in Belarus and Russia. This made trading with Kazakhstan (6.9% export share, with a value of USD 23.42M for MY 2020) troublesome. Additionally, Egypt has changed regulations for imports. Starting from March 2022, importers will have to use letters of credit, and documentary collections to finance imports will no longer be accepted. With this setback along with higher freight costs, the season of fresh apple exports to Egypt is ending. Demand in the Middle East is still holding up, but there is only a narrow range of apple varieties that they prefer.

Apple prices have gone up due to demand for varieties with limited supply. The price for Champion reached USD 0.43/kg and Empire USD 0.46/kg. Also, input costs such as energy, fuel, and packaging have increased, pushing the price forward.

The outcome for Polish apples will depend on various conditions. Producers are hoping that the domestic market will come to aid. Also, exports to other EU countries like Germany will be the focus. The storage cost is increasing every month, but the stock is still high. As there are signs of a difficult season for apple sellers, there will be a short gap between the old and new seasons of fresh apples.