1. Weekly News

India

Kashmiri Apple Growers Urge Government Action Amid Rising Foreign Imports

As apple harvesting season begins in Kashmir, local growers are raising concerns about the increasing influx of foreign apples. The imports from Afghanistan and Iran threaten to drive down market prices. Regions such as Shopian, Pulwama, Anantnag, and Kulgam are witnessing the early arrival of these imports, leading stakeholders to call for government intervention. Orchard owners advocate for higher import duties, with some suggesting a 100% duty on foreign apples to protect the domestic market. In 2024, the region suffered severe weather events, including hail storms and strong winds, which damaged up to 60% of apple orchards, adding to the challenges of competing with imported varieties. Local leaders are pushing for protective measures such as market intervention schemes to ensure fair pricing for Kashmiri apple producers amid these ongoing challenges.

Russia

Russia's Apple Imports from China Surge as Prices Decline

According to the National Agrarian Agency and the Rusprodsoyuz Association, Russia's apple imports from China in the first seven months of 2024 surged 2.9 times compared to the same period in 2023, reaching 22.2 thousand tons. During this time, Russia imported 7.6 thousand tons of apples from China, with the average price per ton dropping to USD 904.4, nearly 25% year-on-year (YoY) lower. Retail prices for apples in Russia also dropped, averaging USD 1.58 per kilogram (RUB 150.5/kg) by September 22, 2024, reflecting a 7.5% month-on-month (MoM) decline and a 2% week-on-week (WoW) decrease.

Spain

Increased Apple Production in Castile and León

Castile and León is Spain's third-largest apple-producing region, with a projected harvest increase of 9.32% in 2024, reaching 48.3 thousand metric tons (mt). This growth aligns with the national average increase of 9.36%, bringing Spain's total apple production to 556.5 thousand mt. Although historically a leading producer, Castile and León are surpassed by Catalonia, expecting a 13.28% increase to 268.7 thousand mt, and Aragon, with a 2.54% rise to 165.1 thousand mt. Meanwhile, Catalonia faces a significant decline of 36.07% due to drought, and Castile and León anticipate a slight increase of 0.16% to 16.4 thousand mt. Within Castile and León, Soria is the largest apple-producing province, forecasted to yield over 35 thousand mt.

Turkey

Hailstorm Causes Significant Damage to Apple Orchards in Isparta, Turkey

A recent hailstorm in Isparta, Turkey, severely damaged around 16 thousand acres of apple orchards in the Senirkent district. The storm struck on September 21, 2024, leading to immediate damage assessment efforts throughout the region. Agricultural insurance agency TARSİM has held meetings to expedite the claims process for insured farmers affected by the disaster.The Provincial Directorate of Forestry and other teams began evaluating the full extent of the damage. Local authorities collaborate with farmers to address their needs and support recovery efforts during this challenging harvest season.

2. Weekly Pricing

Weekly Apple Pricing Important Exporters (USD/kg)

Yearly Change in Apple Pricing Important Exporters (W39 2023 to W39 2024)

Italy

Italy's apple prices remained at USD 1.91/kg in W39, reflecting a 3.24% MoM increase due to the continued limited harvest in Val Venosta and other regions, which has constrained supply. However, prices have remained stable due to the local industry’s ability to meet domestic demand and export commitments. The 20.42% YoY decrease reflects last year's higher production, which led to greater market availability and more competitive pricing in 2023, contrasting with the current season's reduced production.

United States

In W39, apple prices in the United States (US) held steady at USD 1.26/kg, reflecting an increase of 4.13% YoY. The price increase is due to the anticipated higher quality of the 2024/25 apple harvest, particularly for popular varieties like Gala, Granny Smith, and Red Delicious, which are performing well despite concerns about water availability. However, prices declined by 18.18% MoM due to the overall market oversupply resulting from the increased harvest and the early maturation of late-season varieties in southwest Michigan, leading to a competitive pricing environment. Additionally, the potential impact of summer rots and watercore on specific apple varieties has further influenced market dynamics.

Chile

Apple prices in Chile fell by 5.62% WoW to USD 1.68/kg in W39. This represents a 7.18% decrease MoM and a significant decline of 22.22% YoY. The price decline is due to the continued easing of production limitations, resulting in increased supply in the market, which has outpaced steady demand. Additionally, producers are adjusting prices to align with the gradual stabilization of market conditions following improved weather. The YoY decline is primarily due to last year's elevated price base, as producers faced significant production challenges that drove prices higher. As a result, the market is experiencing further adjustments in pricing to achieve balance amidst changing supply dynamics.

South Africa

In South Africa, apple prices rose by 3.85% WoW to USD 0.81/kg in W39, reflecting a 19.12% MoM increase. This increase is due to rising production costs, mainly linked to pest management challenges, such as the woolly apple aphid, which continues to affect production in primary growing regions in South Africa. The persistent need for more sustainable pest control methods has increased price pressure. However, YoY prices declined by 37.21% due to significantly improved overall yields in 2024 compared to the previous year's weather-related production losses, resulting in higher prices during the same period. This adjustment reflects the market's response to the current supply dynamics and the impact of last year's challenges.

France

Apple prices in France continued to decline in W39, dropping by 5.49% WoW to USD 1.55/kg. This represents a MoM decrease of 16.22% and a YoY decline of 1.90%. These declines are primarily due to the continued recovery in production from regions like Provence-Alpes-Côte d'Azur and Auvergne-Rhône-Alpes, which has alleviated some of the supply pressures previously faced in the market. The influx of fresh harvests in these areas has contributed to short-term price reductions. Additionally, the YoY decrease results from lingering supply shortages from key regions like Nouvelle-Aquitaine and Occitanie, which experienced production challenges earlier in the season, ultimately impacting overall market dynamics and pricing.

3. Actionable Recommendations

Implement Strategic Marketing to Boost Apple Prices

Apple producers in France should implement strategic marketing initiatives to counteract declining prices. By enhancing branding and promoting the unique qualities of their apples, they can attract more consumers and differentiate themselves in the market. Collaborating with local retailers to create promotional campaigns, such as discounts or bundled offers, will increase visibility and sales. Additionally, leveraging social media and online platforms to reach a broader audience can stimulate demand, helping stabilize prices despite the influx of fresh harvests.

Monitor and Optimize Apple Import Strategies

Russian importers should actively monitor the increasing influx of apples from China and analyze pricing trends to optimize their purchasing strategies. This includes negotiating better contracts with suppliers to capitalize on the declining average price per ton. Additionally, importers should assess market demand and adjust their import volumes accordingly to avoid oversupply, ensuring competitive retail pricing while maintaining profitability. Regular communication with suppliers can also enhance flexibility in sourcing and help mitigate risks associated with price fluctuations.

Enhance Supply Chain Management for Apples

Italian apple producers should focus on enhancing their supply chain management to ensure that domestic demand and export commitments are met effectively. This involves improving coordination with local distributors and retailers to optimize inventory levels and reduce wastage. Producers can strategically plan their harvests and distribution by implementing better forecasting methods, such as utilizing advanced data analytics to analyze historical sales data and market trends, collaborating with retail partners to share insights on consumer preferences, and investing in technology solutions like ERP systems for integrated data management. These approaches allow for better price stability and responsiveness to market changes, particularly during periods of limited harvest.

Sources: Tridge, Diariodecastillayleon, Freshplaza, Greater Kashmir, Mxfruit, Rosng, Sondakika