Portuguese Apple Producers Face Skyrocketing Energy Costs Which Could Lead To Less CA Storage

Portuguese apple producers faced severe drought and heat waves in 2022, which impacted the profitability of the orchards since the apple trees, when subjected to these extreme conditions, protect themselves by producing less and smaller fruits. Producers also faced increased production costs such as fertilisers and fuel. Portuguese producers are facing even further increased production costs in the form of skyrocketing energy costs.

Resultantly, producers are reluctant to stock up apples in controlled atmosphere storage rooms because of the expected brutal increase in energy costs, since these rooms are great energy consumers. The immediate consequences on the market are increased pressure to sell fresh apples as soon as possible and avoid excessive cold storage, which creates a buyers market. This is likely to cause momentary imbalances on the supply side in the form of price decreases, particularly during the production phase that runs until the end of October.