W3 Apple Update: South Africa and New Zealand Expecting Promising Apple Harvest in Jan-24, US Records Reserved Stock, Apple Demand Rises in EU, and Moldova Hits Low in Exports

Promising Early Start for South African Apple Harvest in 2024

The South African apple sector is expecting a positive 2024 season after hail damages in 2023. Early harvest, ahead by one to two weeks, indicates promising apple export volumes. Hortgro forecasted a 7% year-on-year (YoY) increase in apple exports. Young orchards and favorable weather have boosted apple volume, especially for Gala, Cripps Red, and Bigbucks varieties.The variety of Pink Lady, volumes are expected to rise by 8% YoY.

New Zealand Facing Apple Shortage

In New Zealand, supermarkets and grocers are currently facing a six-week apple shortage, with the last few hundred crates from the 2023 season leftin stock. The shortage is attributed to lower quantities from the previous season's crop, which is stored for year-round sales. Despite a 10% YoY apple crop loss from Cyclone Gabrielle in Hawke's Bay, New Zealand is anticipating a bumper crop in late Jan-24. Growers remain confident about supplying both domestic and export markets. Consumers are advised to opt for new season varieties like Sunrise and consume them within two weeks for optimal freshness.

US Apple Association Reveals Record Reserves and Regional Growth Trends in Annual Report

The United States (US) Apple Association has reported a robust apple harvest in the apple regions with approximately 190 million bushels in reserves, comprising 140 million for fresh consumption and 51 million for processing. Washington state led with a 38% YoY increase, contributing 42 million bushels, followed by New York State with a 44% YoY growth. Key varieties, including Honeycrisp, Gala, Red Delicious, Granny Smith, and Fuji, comprise 76% of the total. A 13% YoY price hike since 2020, coupled with a 30% YoY surge in production costs and decreasing exports, presents challenges, prompting the industry to explore new markets for surplus apples.

Despite Higher Prices and Slower Stock, EU Apple Boosting Demand

The European Union (EU) apple market has faced challenges with low supply, resulting in higher prices across major apple-producing nations in Europe. European Commission data reveals a Jan-24 price of USD 1.02 per kilogram (kg), marking a USD 0.16/kg increase from the highest level in the last five years. The total EU apple production for the year is estimated at 11.4 million metric tons (mmt), reflecting a 385 thousand metric tons (mt) decrease from 2023. Current stocks are 434 thousand mt below the five-year average. Slower stockpiling affects exports and imports, boosting the appeal of the European market with higher prices.

Moldovan Apple Exports Hit Five-Year Record Low in Dec-23

Moldova has witnessed a steep drop in Dec-23 apple exports, hitting a five-year low at over 7.5 thousand metric tons (mt), valued at around USD 4.5 million. Nearly half of this export volume went to the Russian market despite the Russian ban on regulated fruit products from Moldova since December 4, 2023. Major buyers included Romania, Saudi Arabia, the United Arab Emirates (UAE), India, and Israel. Moldova's apple exports from Jul-23 to Dec-23, totaling 39 thousand mt, marked a five-year low, despite an estimated annual production of 500 to 510 thousand mt.