W46: Weekly Apple Update

Europe

WAPA Revised the Forecast for Apple Production in the EU

Initially, WAPA (World Apple and Pear Growers Association) predicted the 2022/23 apple harvest at the same level as last season. However, in August 2022, a drought was recorded in several EU countries, which led to both a decrease in fruit size and a decrease in crop volumes. Poland, one of the leaders in the production of apples in Europe, most likely, according to the results of the current season, will not lose its position as the leading supplier of fruits. However, according to preliminary forecasts, the harvest in this country will also be lower than expected. The main reason is the lack of manpower. The volume of apple stocks in Polish storage facilities as of July 1, 2022 amounted to 518,930 tons. The surplus at this date compared to the 5-year average was just over 1% of the crop size. Some of these stocks have been carried over to the current marketing year. WAPA emphasises that the industry has faced several challenges this year which include rising raw material costs (especially energy and other agricultural inputs), high transportation costs and lack of labour force (especially for harvesting).

Tridge Analysis: Energy Crisis Threatens the EU Fruit and Vegetable Production

High electricity prices combined with other rising costs of production inputs, services, and logistics across northern and western Europe threaten the supply of fresh fruits and vegetables. Surging power and gas prices will impact crops grown through the winter in heated greenhouses, such as tomatoes, peppers, and cucumbers, and those which need to be placed in cold storage, such as apples, onions, and endives. Tridge's global market analysts and country representatives analyze the current threats to the fresh produce industry across the main European countries as the energy crisis develops. (Continue Reading)

Italy

Fruit and Vegetable Price Trend

The apples are currently stable since all the Italian varieties are on the market, with the latest entry for the Fuji and Scilate varieties. The quantities of Annurca apples are increasing. Prices are lower for lowland products, as mountain varieties are in greater demand, especially the branded ones.

United States

Michigan Apple Committee Wins Specialty Crop Promotional Grants

The Michigan Apple Committee (MAC) has received grants to help that state’s apple growers improve marketing to shoppers and grocery retailers. The 2022 USDA Specialty Crop Block Grant Program (SCBG) grants provide MAC $200,000 dedicated to marketing efforts focused on consumer and retail audiences, according to an announcement from the Michigan Department of Agriculture and Rural Development. MAC will receive $125,000 for a project titled “Social Media Marketing to Raise Brand Awareness of Michigan Apples,” a consumer brand awareness campaign that uses social media marketing tactics to educate consumers and increase demand for Michigan apples. The project is designed to build engagement with consumers to drive a deeper connection to the brand, resulting in increased apple movement in the retail marketplace, according to a news release.

The second project, funded for $75,000, is “Trade Advertising and Retail Outreach for Marketing Michigan Apples,” which aims to increase sales of Michigan apples by connecting with retail partners through targeted outreach, resources and ads in trade publications. The SCBG provides federal funding (from H.R. 133 stimulus) to state departments of agriculture to support the specialty crop industry and the impacts on the food system due to COVID-19. Past MAC SCBG-funded projects have focused on social media, consumer and trade print advertising and retailer engagement. Each project’s results, analytics and learnings are used to inform future marketing strategies and campaign planning, according to the release. The MAC is a grower-funded nonprofit organisation devoted to marketing, education and research activities to distinguish the Michigan Apple and encourage its consumption in Michigan and around the world.

Netherlands

Apple and Pear Acreage in the Stable State

The acreage of apples and pears in the Netherlands has remained virtually the same in the past year. Statistics Netherlands has a total of 5,911 hectares of apples and 10,099 hectares of pears. The pear area has increased by 33 ha since 2021 and that of apples has decreased by 61 ha. Except for Rode Boskoop, the acreage decreased for all apple varieties, NFO reports. The largest decrease was seen at Jonagold (-32 ha). Since the peak year of 2016 (469 ha), the Junami area has already more than halved and now amounts to 216 ha. Kanzi was also at its peak in 2016 (500 ha), the area of ​​this club variety is now 393 ha.

Moldova

The Export Rate of Moldovan Apple From 2022 Harvest Is Half as Low as Last Year

According to the estimates of fruit-growing organisations, based on data from the customs service of the Republic of Moldova, by the beginning of November, about 31,000 tons of this year's apples were exported from the country. During the same period last year, the export of new crop apples was 2.2 times higher. According to export traders, most of the external deliveries this fall are directed to the Belarusian market, as well as to Kazakhstan and Kyrgyzstan. From which they can conclude that some share of the Moldovan apple also ends up on the Russian market. Massive exports to Romania, which Moldovan suppliers really hope for in the current marketing year, have not yet begun. In November, some leftovers of the local apple are still sold on the Romanian market, but their stocks are small, and, as exporters from the Republic of Moldova hope, a “window of opportunity” will open for them in the second half of the month. Operators of the Moldovan fruit market note that since the beginning of November, apple exports to the countries of the Persian Gulf have been gradually activated. Prices for it in these markets are "gradually adjusted upwards." Probably for this reason, in November, in the domestic market of Moldova, the purchase prices for a high-quality apple of the Gala group of varieties increased by 0.5-1 lei/kg, up to 7.5-8 lei/kg ($0.39-0. 42/kg).   

Brazil

Low Supply Ensures Good Apple Trade

This week (11/14 to 18/11) was marked by a satisfactory pace of apple sales in the South, even with the Proclamation of the Republic holiday (15). This is because the classifiers are heading towards the finalisation of their inventories. As a result, prices rose for most profiles, even slightly for some. The Gala 165 Cat 1 was sold at R$ 110.22/18 kg box on average for the classification regions, an increase of 9% compared to last week. 

Apple Marketing Normalizes in Classification Regions

This week (11/07 to 11), sales of apples were good in the classification regions of the South. According to agents consulted by Hortifruti/Cepea, the good pace is due to the normalisation of access on highways and the low supply. Thus, what the farmers had available, they managed to sell without difficulties. In this scenario, prices are sustained at good levels. Gala 110 Cat 1 was sold at BRL 122.3/18 kg box on average across regions, up 6% compared to the previous week. Only fuji presented some post-harvest problems, leaving buyers fearful about its quality. Thus, the gala achieved a greater flow of sales.

Apple Orchards for the 2022/23 Harvest Are Being Affected by the Weather

The 2022/23 apple crop is under development in the South and, in general, the erratic weather could harm it. According to agents consulted by Hortifruti/Cepea, the biggest concern is with gala and fuji, which concentrate their production in Rio Grande do Sul and Santa Catarina. In the periods of budding, flowering and initial fruit development, rain, frost and even snow were recorded in the mountains of Rio Grande do Sul and Santa Catarina, harming the formation of apples, which needed a warmer climate in the period. As for early apples, such as eva, whose production is concentrated in the regions of Porto Amazonas and Lapa do Paraná, the prospects are positive. The anticipated low temperatures in May and the satisfactory winter favoured the dormancy of the orchards.

Egypt

Prices of Vegetables and Fruits

Traders said that on 11-15-2022, the price of yellow apples ranged from 20 to 25 pounds while that of red apples ranged between 20 and 35 pounds. On the other hand, green apples ranged from 20 to 40 pounds while the American apples oscillated between 30 to 35 pounds.

Colombia

Price Increase of Granny Smith and Royal Gala Apples in Wholesales Markets of Colombia, in W45

Granny Smith and Royal Gala apples increased their price in 25 of the 36 wholesale markets in Colombia during W45. The price increase is due to the low volumes of apples coming from Chile and the rise of the USD/COP. In Armenia and Bogotá, for example, royal gala apples were priced between USD 1.57/kg (COP 7,544/kg) and USD 1.91/kg (COP 9,147/kg), resulting in an average rise of 5.56% in price compared to W44.

Ecuador

Apples Are Top Imported Food Product

Apples remain to be Ecuador's top food-importing product. The apple buying market purchases approximately USD 55M in CIF terms yearly. The main imported variety is the Royal Gala, and 80% of the fruit comes from Chile. In W46, the wholesale cost of a royal gala apple is around USD 1.50/kg.