1. Weekly News

Europe

European Apple Market Reflects Varied Price Trends in Nov-24

In Nov-24, apple prices across primary European markets showed varied trends due to differing local market conditions and production dynamics. The European Union (EU) saw stable prices at USD 100.03/100 kilograms (EUR 96.2/100kg), a 4.3% year-on-year (YoY) increase and 23.5% above the five-year average. Apple prices in Poland increased by 7.4% YoY due to strong domestic demand and exports, while prices in France declined by 3.1% YoY due to higher production volumes. Meanwhile, apple prices in Italy increased slightly, driven by strong export demand for premium varieties. Germany’s prices were mixed, dropping 1% from Oct-24 but rising 4.8% YoY, reflecting changing supply and demand conditions.

India

Apple Supply Tightens in India Due to Growing Demand for Imports

India is experiencing a tightening apple supply as both the fresh harvest and cold-stored apples are almost depleted, which led to a temporary price spike. Seasonal production fluctuations have caused a shortage and increased reliance on imports from Iran, Turkey, and Poland, which offer competitive pricing and consistent quality. While improvements in local production and new cold storage facilities have enabled year-round availability of domestic apples, imports remain essential to meet demand for premium and off-season varieties. Apple consumption is growing due to a rising middle class and changing preferences. The balance between local and imported apples will rely on improvements in domestic production and storage infrastructure.

South Korea

South Korea Scales Up Apple Cultivation to Ensure Agricultural Resilience

In response to climate change, South Korea is implementing a strategic plan to expand apple cultivation in Gangwon Province to increase the area dedicated to apples from 931 hectares (ha) in 2023 to 2 thousand ha by 2030. This initiative is part of a broader agricultural strategy focused on sustainability and rural innovation. The government will develop innovative orchard complexes and employ automated systems to enhance productivity while reducing labor. Additionally, to combat the challenges posed by climate change, such as heatwaves and cold damage, South Korea plans to strengthen production infrastructure and disaster response mechanisms, ensuring the resilience of its apple industry.

Ukraine

Ukraine's Apple Producers Benefit from Price Surge Due to Limited Harvest

Ukraine's apple producers enjoy a profitable season, with local and global apple prices rising significantly. A smaller harvest and strong demand for apples due to a shortage of orange juice concentrate have tripled the price of apple concentrate. This price surge has doubled the profits for Ukrainian apple producers compared to last year. However, experts warn that the future remains uncertain, as apple prices may fluctuate based on weather conditions and market dynamics.

2. Weekly Pricing

Weekly Apple Pricing Important Exporters (USD/kg)

Yearly Change in Apple Pricing Important Exporters (W51 2023 to W51 2024)

Italy

Italy's apple prices dropped slightly by 1.14% week-on-week (WoW) to USD 1.74/kg in W51, with a 5.43% month-on-month (MoM) and a 6.95% YoY decrease. The price decrease is due to continued high market availability following the peak harvest period, which has maintained downward pressure on prices. Additionally, increased competition from other European producers has further contributed to the decline despite steady seasonal demand during the holiday period.

United States

In the United States (US), apple prices held steady at USD 1.21/kg in W51, reflecting a 1.63% MoM decrease. This is due to stable supply levels from ongoing harvests and efforts to manage inventory turnover, ensuring market flow despite slightly lower storage levels than the previous year. However, prices increased by 5.22% YoY due to stronger demand for fresh apples earlier in the season and tighter supply conditions for premium varieties, driven by strong domestic consumption trends and limited international availability.

Chile

Apple prices in Chile rose slightly by 1.49% WoW to USD 2.04/kg in W51, reflecting a 12.09% MoM increase due to stabilizing supply levels and reduced inventory pressure from processors and exporters, which supported a gradual price recovery. However, prices dropped by 38.37% YoY due to the exceptionally high base prices in the previous year caused by supply shortages and heightened demand challenges, with current prices reflecting more typical market conditions.

South Africa

South Africa's apple prices dropped by 3.30% WoW to USD 0.88/kg in W51, with no MoM change and a 33.33% YoY drop. The WoW price decrease is due to reduced demand following the peak harvest period, leading to higher supply levels that exerted downward pressure on prices. Additionally, the YoY decline reflects last year's higher base prices, which were affected by a smaller harvest, limited supply, and logistical challenges.

France

In W51, apple prices in France declined by 8.63% WoW, reaching USD 1.27/kg. This represents a 7.30% MoM decrease and a 23.03% YoY drop. The price drop is due to continued high stock levels, which have maintained downward pressure on prices. Additionally, competition from imported apples and the residual effects of earlier oversupply from Storm Caetano further intensified the drop. The YoY decline is primarily due to the high base prices of the previous year, which were influenced by supply challenges. The MoM decrease is linked to reduced demand as the holiday season approaches, easing some of the initial recovery seen in W50.

3. Actionable Recommendations

Enhance Apple Cultivation Resilience with Climate-Adaptive Strategies

Apple producers in Gangwon Province should prioritize climate-adaptive strategies to combat challenges posed by heat waves and cold damage. Examples of such methods include selecting drought-resistant apple varieties, such as Gala, Fuji, or Honeycrisp, which are known for their ability to withstand dry conditions, and developing new resilient hybrids tailored to local climates. Implementing shade nets to protect from excessive heat and using windbreaks to shield orchards from cold winds are also effective measures. Expanding areas dedicated to apple cultivation and integrating innovative orchard complexes with automated systems can enhance productivity and reduce labor. Strengthening production infrastructure through innovative irrigation systems and soil moisture sensors, alongside implementing disaster response mechanisms, will further increase resilience to climate change, ensuring long-term sustainability and consistent apple yields despite environmental stressors.

Strengthen Domestic Apple Supply Chain to Meet Growing Demand

Apple producers in India should focus on enhancing domestic production by adopting advanced cultivation techniques such as controlled-environment agriculture (CEA), precision farming, and drip irrigation to optimize yield quality and reduce water usage. Additionally, implementing high-density planting methods can increase orchard productivity while maintaining sustainability. To address seasonal fluctuations, expanding cold storage facilities equipped with modern temperature and humidity controls will help store apples longer, ensuring year-round availability. Investing in technology for better post-harvest management, such as automated sorting and packaging systems, can also improve the shelf-life and quality of apples. This will help reduce import dependency, particularly during off-seasons, while fostering a balanced supply chain strategy.

Mitigate Price Volatility by Strengthening Supply Chain Resilience

Ukrainian apple producers should enhance supply chain resilience to mitigate price volatility. Diversifying sourcing strategies—such as securing apple supplies from alternative regions within Ukraine or neighboring countries like Poland or Moldova—can create a buffer against production shortfalls. Additionally, exploring alternative markets such as the Middle East or East Asia, where demand for apple concentrate is growing, will help minimize reliance on traditional markets. Strengthening partnerships with exporters and improving storage capabilities will also help stabilize supply and demand. Investing in weather forecasting and crop management technologies will enable producers to better prepare for future challenges, ensuring consistent quality and protecting profitability amidst uncertain market dynamics.

Sources: Tridge, Agrobusiness, Chosun Biz, European Commission, Fresh Fruit Alliances Pvt. Ltd., Freshplaza, Kashmir Despatch