Global
High Supply in Northern Hemisphere and General Stagnation of Apple Consumption.
The apple market in most countries this week was in a state of calm against the background of their high supply in the Northern Hemisphere and the general stagnation of consumption. As a result, it was possible to raise prices for apples only in exceptional cases. For example, in Uzbekistan, due to the limited supply of high quality Gala apples , the average price has risen to $0.63/kg. At the same time, for example, the Golden Delicious variety was offered on the Uzbek market at $0.54/kg. In other markets, apple prices either remained stable or even sagged. Thus, in Poland prices from the very beginning of the season were quite low, and by the end of the last week they dropped down to $0.15-0.17/kg in the segment of both varieties. At the same time, the reason for the decline was not only a serious increase in the apple harvest in Poland this year, but also growing competition with other suppliers in the export markets. So, despite the fact that in Moldova an apple was offered almost twice as expensive as on the Polish market, it was the Moldovan exporters who had more interesting opportunities, for example, on the Romanian market.
Europe
Smaller Sizes and Lower Volumes of Apple Due to Drought and Heat Waves
The current apple harvest for 2022/23 was initially estimated by WAPA at a volume very similar to that of the previous harvest. However, since August 2022, several Member States have registered additional drought and heat waves that will lead to smaller apples and therefore lower volumes. In the case of Poland, the Member State with the largest volume, it has been reconfirmed that the harvest estimate needs to be adjusted to what is salable. There are several preliminary sources of information about the size of this harvest; these indicate that the final estimate may be smaller than expected, mainly due to, among other things, labor shortages.
The volume of Polish apple stocks on 1 July 2022, part of which has been carried over to the current marketing year, was 518,930 tons. The surplus of these stocks on that date compared to the five-year reference average was just over 1% of the harvest volume. The sector is temporarily facing several challenges: (1) rising input costs (especially energy and other cultivation resources), (2) high transport costs, and (3) a shortage of labor, especially for the harvest.
China
New Varieties of Red-Fleshed Apples Have Been Bred in China
Professor Xuesen Chen's team from Shandong Agricultural University won the National Ctai Prize for inventions in creating a high-quality and high-efficiency technology for breeding new varieties of apples, Produce Report reports. The researchers used local wild apple trees and the Red Fuji variety to unravel the molecular mechanism of creating a high-flavonoid apple, and created CSR6R6 high-flavonoid apple germplasm. They also used CSR6R6 from Gala, Fuji and other cultivars as parental forms and bred 4 new red-fleshed apple varieties Xinghong, Fuhong, Meihong and Manhong.
These new varieties have bright red skin, red pulp with a sweet and sour taste. They are expected to fill the gap in the assortment of red apples in Asian countries. During the selection of red-fleshed apples, Chen Xuesen's team also invented a unique selection method that reduced the selection period from 20 years to 15 years. These new varieties of apples have a sweet and sour taste, but Chen Xuesen claims that the Meihong apples, which they also called Sweet Red, have a higher sugar content and almost no acidity. It is expected that in three to four years these new varieties of apples will be officially introduced to the Asian market.
Taiwanese Buyers Looking For Alternative Sources for Fuji Apple in W42
In W42, Taiwanese buyers have been looking for alternative sources for Fuji Apple. Taiwan imports Fuji apples primarily from the USA, but in 2022, US apple prices seem to be about 20% more expensive than in 2021. Some alternative sources that Taiwanese buyers are considering are France and Italy.
Italy
442% Price Increase From the Field to the Shelf for Apples
The average price of fruit and vegetables rises by 300% on the way from the field to the shelf of the large-scale retail trade. According to CIA-Agricoltori Italiani, skyrocketing inflation is creating strong imbalances along the supply chain of fresh agricultural products. The repercussions on the consumption of fruit and vegetables in households are significant, registering a decline of 10% in the last 12 months. But it is also deflation alarm for farmers, who see prices recognized too low compared to the sharp increases in production costs. According to the CIA analysis Golden apples has the second largest origin / shelf gap after table grapes at 442%, increasing from EUR 0.43/kg from the field to EUR 2.33/kg for consumption.
France
French Fuji Apple Producers Prefer to Sell to European Markets Due to Lower Production Volumes
Fuji is an apple variety which is susceptible to alternate bearing, meaning it is inclined to be less productive once every two years. According to a large French apple producer (200,000 MT/year), 2022 is the year with smaller volumes. The heat waves and drought exacerbated the situation leading to even lower production volumes. Taking into account the lower volume, French producers prefer to sell to the nearest countries, like Spain, reducing transport risks and costs. Furthermore, for the moment producers prefer to sell apples in bins, which is easier and lowers packing costs.
Poland
Unfavorable 2022/23 Polish Apple Harvest Season Due to Labour Shortages
The 2022/23 Polish apple season was not favourable in September as growers were unable to harvest the apples on time, mainly due to labour shortages. Apples in the 2022/23 season are of varying quality, with some orchards producing good quality apples and others having somewhat lower quality. However, there were no major issues with apple sunburn observed this season. Since this year's autumn was cold with little to no significant temperature change, apples were less reddish in some orchards. And in each plot, fewer apples were seen in the lower areas of the trees and more towards the tree tops.
The Current Situation on the Wholesale Market in Bronisze, October 19, 2022
Wholesalers who are currently the sole buyers of larger quantities of apples are in a very comfortable position when it comes to purchasing. Supply slightly exceeds demand. Therefore, they immediately offer fruit growers only PLN 15 per box (PLN 1.00 per kilogram). However, larger transactions are usually concluded for around PLN 18 per box (PLN 1.20 / kg). The varieties in which we can talk about the interest of buyers are currently Delikates, Malinówka or Lobo. In their case, the fruit growers selling most often receive PLN 25 per box (PLN 1.66 / kg). Traditionally, the greatest supply is the lowest. This applies to Szampion, Red Jonaprinca or Ligola. The starting price is PLN 20 per box (PLN 1.33 / kg). Culinary varieties are a bit more expensive. The fruit growers sell the Antonówka for PLN 23 - 25 (PLN 1.53 - 1.66 / kg) for the box. Boscoop, on the other hand, can be sold for a few zlotys per box more.
What’s Next for Industrial Apple Prices?
The past week has not brought any significant changes to the industrial apple market. At collection points prices range between 0.33 - 0.34 PLN/kg. A maximum of 0.35 - 0.36 can be obtained from intermediaries for full truck loads. The Szampion variety for mousses or purees sells for slightly higher at 0.40 - 0.42 PLN/kg. Considering the labor costs, the prices are still considered low. Growers who in August decided to send all apples for processing either have already finished harvesting this season or will end them soon. Therefore, the supply of the raw material at the turn of October and November will not increase as much as it has in recent years.
Unconfirmed information is being reported about the export of industrial apples from Powiśle Lubelskie to processing plants located in Hungary. In July and August, the import of apple concentrate from Ukraine and Moldova increased. What's more, with the current zloty exchange rate and concentrate prices, the plants could theoretically offer 0.60 - 0.70 PLN/kg for the raw material. Unfortunately, a different purchasing policy was chosen. Contradictory information is still coming from the market about the upcoming increases and decreases in prices.
Moldova
Moldovan Apple Has a Chance on the Romanian Market, but Only Gala
The heads of a number of large horticultural enterprises in Moldova believe that domestically produced apples may well be competitive on the Romanian market, even taking into account the fact that the current level of purchase prices for them is almost twice as high as for a Polish apple (according to EastFruit monitoring , $0.31/kg against $0.18/kg). The main motive for such a seemingly paradoxical statement, according to some gardeners and traders, is that the routes from many Moldovan fruit stores to some distribution centers of Romanian wholesale buyers are several times shorter than those from Poland to Romania. Accordingly, if Moldovan exporters can agree with road carriers on tariffs at least 0.12-0.15 euro cents / kg lower than the tariffs for the transportation of a Polish apple, then an apple from the Republic of Moldova may be on the shelves of Romanian supermarkets in the same price segment with a Polish one. goods.
However, according to the operators of the fruit market in Moldova, this assumption is plausible only in relation to the apple of the Gala group of varieties - to a greater extent, and also, perhaps, Golden Delicious, Granny Smith and some other varieties - to a much lesser extent. Harvesting apples "Gala" in the most technologically advanced farms in Moldova is completed, the products are sorted, the highest quality is placed in storage. Whereas an apple of late varieties, especially those with little liquidity in the European and Middle Eastern markets, most likely will not be put into storage. An important reason is the recent significant increase in electricity prices, perhaps not the last in the current marketing year. Given this (and a long list of other factors), it is likely that many fruit storages, even high-tech ones, will remain half empty by the time the 2022 apple harvest is completed.
Brazil
High Price of Domestically Produced Apples Stimulate the Sale of Imported Apples
This week (10/17 to 10/21), the high prices of domestically produced apples boosted the sale of imported apples, according to agents consulted by Hortifruti/Cepea. This scenario has been observed for some time, due to the very low Brazilian stock. The national gala apple 110 Cat 1, for example, was sold for R$ 123.30/box of 18 kg and the Portuguese apple for R$ 138.00/box of 19 kg - the greater weight of the imported box stands out, which ends up being attractive. For the next few weeks, a similar scenario is expected. And, with the end of the year approaching, the entry of precocious products should “mess up” the market.
Australia
Australian Growers Suspect the Nitrate Content Is Affecting the Color of Their Apples
The Tasman District Council reports that some apple growers on the Waimea Plains, near Nelson, Australia, believe that elevated nitrate levels in the water are affecting their crops. The apple growers are extremely concerned about this, while the high nitrate content can also pose a threat to public health. Nitrate levels in the aquifers beneath the plains have long been a concern. A study by the Tasman District Council in 2016 found that concentrations in some areas did not meet national drinking water standards. Testing of some wells in 2019, arranged by Waimea Plains landowner Cathy Hughson and fellow Tasman District resident Lew Solomon, also showed that some nitrate levels exceeded drinking water standards. Barry Johnson, environmental policy manager, told the committee that a new model "that looks at nitrate losses" is being worked on with growers and Horticulture NZ.
Bulgaria
Price of Apples in Bulgaria Increased Slightly During W41
The market price index (MPI), which reflects wholesale food prices in Bulgaria, rose last week by 0.75 percent to 2,141 points, BTA reported. Apples rose in price by 1 cent and were bought at BGN 1.36 per kilogram.
Columbia
Granny Smith apples from Chile continue arriving in Colombia with quality issues in W42
Granny Smith apples from Chile continue arriving in the Colombian market with quality problems in W42. The most notorious is scalding. Due to this issue, Colombian importers are looking to source Granny Smith apples from other supplying countries in Europe.
Low Supply of Imported Small Royal Gala Apples in Colombia in W42
The supply of imported small Royal Gala apples is scarce in Colombia due to the low availability of Chilean apples and the predominance of big calibers in Europe. Current imports show low availability of calibers between 150 and 198. It is forecasted that the Royal Gala apple supply from Chile will remain low in the upcoming weeks.
India
Growers in India Are Switching From Apples to Kiwis
Growers around the city of Sopore in Northern Kashmir have started planting kiwis as an alternative to apples. How did that happen? In 2002, the Baramulla District Horticulture Department developed demonstration orchards to propagate the benefits of kiwi fruit, and the efforts were largely successful. A local grower said: "We have produced a good amount of fruit with less investment." He brought kiwi plants from Himachal Pardesh three years ago, planted them in his orchard and got a decent yield. Kashmir supplies nearly 80 percent of the country's apples, but in recent years, growers have not been getting reasonable prices for their apples.
Hungary
Prices of Apples at the Budapest Wholesale Market in Hungary
On the Budapest Wholesale Market in W41, the prices of the most common apple varieties on the domestic market ranged from HUF 250 to HUF 322/kg, of which Idared 262, Jonathan 250, and Gala apples were included in the selection at an average price of HUF 300/kg.
The Extreme Drought Further Deepened the Crisis in the Fruit Sector
In contrast to previous years, this year it was not the late frosts, but the century-long drought that caused outstanding damage to the domestic fruit industry. As a result of the water shortage in the deeper layers of the soil, which has been getting worse since last summer, most of the fruits did not reach the ideal size and content value. According to the FruitVeb Hungarian Vegetable and Fruit Association and Product Council, 42 percent less apples will be harvested this year than last year's 520,000 tons, only about 300,000 tons, the drop will be particularly significant in terms of apple juice. "Unfortunately, the drought not only has a negative effect on this year's crop, it also strongly influences the amount of next year's crop," pointed out Ferenc Apáti, the president of FruitVeb.
South Korea
Apples Prices Are Strong Due to High Demand in South Korea
The price of apples is strong compared to last year and an average year due to a temporary shortage as the price of apples is changed from early to mid season. At the Garak Market in Seoul on the 17th, Fuji apples were traded at an average price of 39,617 won per box of 10 kg product. This is 40.5% higher than the average meridian value in October of last year (28,185 won) and 31.8% higher than the average meridian value in October of last year (351 won). Park Seung-woo, head of the auction at Andong Agricultural Cooperatives in Gyeongsangbuk-do, said, “Apples are in a moment of transition from mid-life varieties such as Hongro and Yanggwang to Fuji, which is a late-season variety, so there is a temporary shortage of supply.
Apple prices are expected to decline once the Fuji apples are released in earnest, but the range of fluctuations is not expected to be large. Kim Hee-seok, an auction houser with the Korea Agency for Garak Market, said, “If the shipment of Fuji apples increases from November, the price of apples will decrease slightly. According to the Korea Rural Economic Research Institute, apple production this year is expected to be 510,000 tons, down 1.1% from last year and similar to the average year.