Poland: Purchase prices for industrial apples do not go hand in hand with the boom in apple concentrate

Published 2023년 1월 3일

Tridge summary

The article highlights the disconnect between the rising prices of apple concentrate and the purchase prices of industrial apples. Despite increased production costs, processors have found ways to advantage themselves. The past eight years have shown a consistent pattern where lower concentrate prices led to cheaper raw materials. However, this season has seen a significant gap between the two, with concentrate sold at its highest price in six years. This discrepancy is due to the processing industry's strategy of absorbing increased costs and the limited export possibilities for dessert apples, which have led to a larger volume of juice production and increased exports. The decrease in Chinese juice supplies to the US market has also contributed to the increase in Polish exports of concentrate.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Purchase prices for industrial apples do not go hand in hand with the boom in apple concentrate. Yes, the costs of its production have increased, but the processors have made the most of the situation in the industry to their advantage. In the case of the purchase prices of industrial apples and the prices of apple concentrate over the years, we can see a clear relationship. The cheaper the concentrate, the cheaper the raw material. Record shortages of concentrate in 2017 pushed up the purchase price to a memorable level of over PLN 1.00/kg. In general, with a few exceptions, we see such a relationship over the last 8 years. This season, however, is different. It is worth paying attention to the fact that we have reported many times this season. It's about shifting the rising production costs onto the fruit growers. This is well presented in the chart prepared by PKO BP analysts. In the marked place, we can see how the purchase prices of the raw material and the selling prices of ...

Source: Sad24