1. Weekly News

Argentina

Argentina's Apple Production and Exports to See Modest Growth in 2024/25 Season

Argentina's fresh apple production for the 2024/25 season is forecasted at 488 thousand tons, slightly increasing due to favorable weather conditions enhancing yields. The dominant varieties, such as Red Delicious, Granny Smith, and Gala, account for nearly 90% of apple production. Exports are expected to rise to 82 thousand tons, fueled by growing demand from Latin American markets like Brazil and Paraguay. In Q1-24, exports increased by 8% year-on-year (YoY) to 14.2 thousand tons, while imports remain minimal, projected at just 3 thousand tons for the season.

Brazil

Peru Opens Market for Brazilian Apples While Agricultural Trade Expands

Peru’s approval of Brazilian apple imports marks Brazil’s eighth market opening in 2024, showcasing its growing agricultural trade influence. This milestone follows Brazil’s efforts to secure access to various agricultural products in Peru. In 2023, Brazilian exports to Peru exceeded USD 724 million, with USD 548 million recorded in the first nine months of 2024. Brazil has gained access to 272 markets across 61 international destinations this year, including 194 new market openings, driven by collaborative efforts between the Ministry of Agriculture, Livestock, and Food Supply (MAPA) and the Ministry of Foreign Affairs (MRE).

Moldova

Moldovan Apple Exports Slightly Decline in Oct-24 as Prices Increase

In Oct-24, Moldova exported 5 thousand tons of apples worth USD 3.3 million, slightly below Sep-23’s 5.3 thousand tons. The primary apple export markets by volume and average price were the Russian Federation with 3.1 thousand tons at USD 0.62 per kilogram (kg), Romania with 1.5 thousand tons at USD 0.71/kg, and Saudi Arabia with 220 tons at nearly USD 1/kg. The average export price in Moldova increased to USD 0.67/kg, up from USD 0.47/kg in Oct-23. Strong domestic demand and record-high prices for industrial apples, reaching USD 0.38/kg by late Oct-24, narrowed the price gap with dessert apples priced between USD 0.38/kg and USD 0.55/kg. The export volumes aligned with last year’s trends, reflecting market stability despite higher pricing.

Russia

Russia Faces Apple Shortage Despite Many Regional Orchards

Russia continues to experience an apple shortage, as the Russian President highlighted during a meeting with the head of North Ossetia-Alania. The supply remains insufficient despite the region boasting the largest apple orchard in Southern Russia, spanning 1.5 thousand hectares (ha). The apple harvest has been affected by frost, prompting imports from Azerbaijan, Armenia, Turkey, Serbia, and Belarus to fill the gap. The discussion underscored the need for increased domestic apple production to meet demand.

Russia's Apple Production to Strengthen Self-Sufficiency in 2025

According to the Russian Union of Producers of Fruits and Vegetables, Russia's apple production is expected to rise in 2025, increasing self-sufficiency from the current 79.3% to 85%. The country's apple market volume is projected to reach 2 million tons in 2024, with an average per capita consumption of 13.8 kg. While imports from countries like Moldova, Serbia, and Turkey may temporarily rise to address the current apple shortage, they are anticipated to decline in the medium term as domestic production increases. Russia's push to strengthen self-sufficiency in apple production aligns with broader agricultural strategies to reduce reliance on external sources. In Nov-24, average apple prices stood at USD 1.37/kg (RUB 137.1/kg), reflecting a 3.6% month-on-month (MoM) decrease.

South Korea

Taiwan to Import 50 Tons of Premium South Korean Apples

South Korea plans to export approximately 50 tons of premium Jukryeong apples to Taiwan by the end of 2024, marking a 15-ton increase compared to last year's 35 tons. Cultivated at high altitudes above 350 meters (m) in limestone-rich loess fields, these apples are prized for their vibrant color, extended storage life, and superior taste. They are well-received both domestically and in Southeast Asian markets. To ensure quality, South Korea implements rigorous pest control measures and pesticide testing and provides logistical and financial support to growers. Export prices for these apples are expected to surpass domestic prices this year.

2. Weekly Pricing

Weekly Apple Pricing Important Exporters (USD/kg)

Yearly Change in Apple Pricing Important Exporters (W46 2023 to W46 2024)

Italy

In W46 apple prices in Italy decreased slightly by 1.14% week-on-week (WoW) to USD 1.73/kg, with an 8.47% MoM decline and 6.49% YoY drop due to the continued impact of peak seasonal production in Oct-24, which has led to increased supply across various apple varieties, including Fuji and Annurca. While demand remains steady, the higher availability of apples during the harvest season has contributed to downward pressure on prices. As the market adjusts to the ongoing supply influx, price stabilization is expected in the short term.

United States

Apple prices in the United States (US) remained stable at USD 1.43/kg in W46 but showed a 30% YoY increase due to strong ongoing demand amid a smaller local crop. The reduced harvest compared to previous years, especially in major growing regions, has supported price stability despite a lack of significant WoW or MoM changes. Export demand has also remained steady, further strengthening the YoY price increase as international buyers seek consistent supply from the US market.

Chile

Chile's apple prices increased by 5.20% WoW to USD 1.82/kg in W46 due to a slight reduction in supply as some inventory from earlier months was cleared, leading to more balanced market conditions. However, apple prices declined by 6.67% MoM and 39.53% YoY due to ongoing higher supply from new orchard plantings and improved harvest yields, which have kept the market oversupplied. Additionally, weaker export demand continues to weigh on prices, contributing to the prolonged decline compared to the previous month and last year.

South Africa

In W46, apple prices in South Africa decreased by 14.81% WoW to USD 0.69/kg, with a 46.51% YoY decrease due to the continued oversupply of red apple varieties like Royal Gala and Kanzi and the ongoing impact of export disruptions, including the suspension of shipments to Taiwan. However, MoM prices increased by 2.99% due to a seasonal boost in local demand, especially for green apple varieties like Granny Smith, and a slight reduction in supply during this period, which helped support prices.

France

Apple prices in France dropped by 5% WoW to USD 1.33/kg in W46, with a decline of 2.21% MoM and 13.07% YoY due to continued seasonal oversupply following the peak harvest period in Oct-24 and increased competition from imported apples. Despite ongoing promotional efforts, domestic demand remained insufficient to absorb the high volumes of apples on the market, putting further downward pressure on prices. The YoY decline is also driven by the large harvest in the previous year, which set a higher baseline for comparison.

3. Actionable Recommendations

Focus on Strategic Domestic Production Expansion

Apple producers in Russia should prioritize increasing production capacity and improving yield efficiency to meet the expected rise in domestic market share. Increasing production capacity can be achieved through strategic measures such as expanding orchard areas, transitioning to high-density planting systems, and utilizing modern technologies like precision irrigation and mechanized harvesting. Producers should also adopt improved tree varieties with higher yields and better adaptability to local climatic conditions. As imports from countries like Moldova, Serbia, and Turkey may decline over time, producers should invest in cultivating high-quality apple varieties and enhance harvesting technologies to compete effectively. By optimizing farm practices, such as soil management and pest control, growers can improve crop resilience and ensure consistent output to meet rising local demand. Additionally, marketing and sales teams should prepare to strengthen the brand positioning of Russian apples in anticipation of decreased competition from imports.

Adjust Apple Variety Focus and Export Strategies

South African apple producers should adjust their crop production strategies by reducing the focus on red apple varieties like Royal Gala and Kanzi, which contribute to oversupply. Instead, they should prioritize higher-demand varieties such as Granny Smith, which are seeing seasonal boosts in local demand. Additionally, producers should explore alternative export markets to mitigate the impact of disruptions, like the suspension of shipments to Taiwan. By diversifying export channels and adjusting the mix of apple varieties, growers can better balance supply and demand, stabilizing prices and reducing market volatility.

Sources: Tridge, Eastfruit, Kvedomosti, Portaldelcampo, Portal Do Agronegocio, RG, Simfruit, TASS, Yna