W4: Weekly Apple Update

Chile

Chilean Apple Season Delayed in W4 Due to Weather Conditions (Jan 27)

In Chile, the apple season that began in W3 has experienced a delay during W4 due to high temperatures that have prevented the development of color in the Royal Gala apples. Producers requested full payments, 100% of the fruit with processing, which represents a risk for exporters. In addition, the cost of buying and packaging a 19kg box of apples ranges around USD 16-16.5. The start of the season is commonly difficult, but the situation is forecasted to change in the upcoming weeks.

France

French Gardeners Are Uprooting Their Orchards Because of Low Apple Prices (Jan 24)

In several regions of France, gardeners began uprooting their orchards with demands to raise the purchase price of apples. In order to save the French orchard, the producers ask their customers, distributors and processors only an additional USD 0.22/kg (€0.20). Although France is the main producer of apples, 1.26ha of orchards disappear every day. A reduction in French acreage is inevitable unless prices are quickly revised.

Poland

The Ministry Summarized the Export of Polish Apples From January to November 2022 (Jan 24)

The Ministry of Agriculture summarized export data from January to November 2022. Comparing YoY, there is a clear decline. The weaker result was primarily due to the lower shipment of apples in the season, which was due to several issues. On an annual basis, Polish exports of fresh apples fell by 22% YoY. The largest market for Polish apples is still Egypt, but there is a clear decline here due to problems with currency exchange. In annual terms, the scale of the phenomenon that has taken place in the last 3 months is still not visible. In November and December there were about declines of 60% YoY.

Moldova

Apple Acreage in Moldova Has Fallen in the Past Five Years (Jan 27)

For the past five to six years, Moldova has reduced its apple acreage by several hundred hectares each year. While Moldova had 53K ha of apple orchards in 2017, the total area decreased to 49K ha. New plantings were also made, but the pace of development of new apple orchards was slower than the process of grubbing up. In accordance with the "National strategy for the development of fruit production in Moldova until 2025", the country wants to further reduce the area of ​​apple orchards to 42K hectares. The Moldovan Ministry of Agriculture (MAFIM) wants to free up land from neglected, old and unproductive plantations and has therefore promised to increase subsidies for clearing old orchards to USD 534.35/ha (10k MDL). However, growers' associations are in no hurry to grub up because they are afraid of a massive reduction in the area of ​​apple orchards.

Brazil

Brazil Closed 2022 With a Negative Balance of USD 94M on Fresh Apples (Jan 28)

In 2022, Brazil imported USD 118.95M worth of apples and exported only USD 24.59M, leaving a negative balance for fresh apples foreign trade of USD 94 M. Compared to 2021, the imports of fresh apples have increased by 2.4 times in 2022 in value and volume. The main reasons for the increase in imports are the break in production of this crop due to the effects of La Niña and the biennial characteristic of Fuji apple trees.

Germany

Apple Demand Was Met Without Any Problems (Jan 26)

As before, German apples formed the basis of the range. After that, the Italian parties were the most important. Relatively few deliveries came from France, the Netherlands, Belgium and Poland. The demand was met without any problems.

Ukraine

The Situation of Apple Producers in Ukraine Is Getting Complicated (Jan 23)

Due to breakdowns and periodic power outages, the storage of apples in Ukraine has become much more complicated. Some producers resign from further storage of these fruits. Before the New Year, apple sales increased slightly. Firstly, their supply has decreased to some extent, and secondly, taking into account the unstable exchange rate and the expected increase in prices of exotic fruit, an increase in demand for apples is not excluded. In general, it is believed that the situation on the Ukrainian apple market will not change significantly. Producers will mainly sell those apples that are not suitable for long-term storage.

Ukraine Resumed Fresh Apple Exports to Malaysia and the Middle East, Despite Russia’s Aggression (Jan 24)

According to EastFruit analysts, Ukrainian gardeners were able to resume the export of fresh apples to the countries of Southeast Asia and the Middle East, despite Ukrainian seaports being blocked by the Russian invaders. Within a few months of the beginning of the full-scale invasion of the Russian occupation forces on the territory of Ukraine, gardeners and traders of Ukraine were able to find new logistics routes and resume supplies to the most distant countries. Of course, the income of Ukrainian producers will decrease due to the increase in logistics costs, but they will allow to cover production costs for efficient gardeners, laying the foundation for active expansion into foreign markets after defeating the Russian aggressor.

India

In India, Apple Growers Ask a Tax on Imported Products (Jan 26)

In India, in the state of Himachal Pradesh, apple production is a major economic sector, with an estimated value of about USD 734.4M (60B Indian rupees). SKM (Samyukt Kisan Morcha), an organization of farmers' unions, has called on the state government to exclude apples from the free trade agreement and impose a 100% tax on imported apples, especially for low-priced apples imported from Iran, for which large tariff increases and strict plant health inspections are expected. For local farmers, production costs have risen, but the prices of apples paid to apple growers have remained unchanged and in some cases have even decreased.

Czech Republic

Fewer Apple Orchards in the Czech Republic (Jan 27)

The era of Czech apple cultivation seems to be coming to an end. Apple trees are gradually disappearing and being replaced by more profitable agricultural crops. Martin Ludvík, chairman of the Fruit Growers' Union, estimates that in the coming months the number of orchards in this country will fall below 10K. Only last year, fruit growers had USD 0.18 (4 crowns) less per kilogram of apples than the estimated price. On a hectare, from which an average of 25MT of apples are harvested, it results in a loss of about USD 4,568.26 (100K crowns).

United Kingdom

UK Gardeners Refuse to Invest in the Long-Term Future of Their Apple and Pear Gardens (Jan 24)

A survey of British Apples & Pears Limited (BAPL) members by the British Growers Association (BGA) at the end of 2022 found a severe decline in future investment in orchards in the face of stagnant income. According to a survey of growers representing about 80% of the UK's leading fruit industry, 150K new apple and pear trees have been canceled this season. The gardeners' intention was to continue to invest in the long-term future of their gardens by planting 480K new trees. Now a third of those orders have been canceled. BAPL producers reported an average 0.8% YoY increase in the amount supermarkets pay them for fruit. This is despite an independent report by Andersons Consulting's John Pelham, which recommends that manufacturers receive at least a 12% increase in profits.

Colombia

Price Increase of Imported Granny Smith Apples in Colombia During W2 (Jan 28)

During W2, in Colombia, the price of Granny Smith apples increased in twenty-six of the thirty-five wholesale markets. The price increased from USD 1.51/kg (COP 6,842/kg) to USD 1.85/kg (COP 8,421/kg) in the Armenia wholesale market and was associated with the reduction in the entry of the fruit from Chile and Europe.