Weekly Product Updates

W40: Apple Update

Fresh Apple
Italy
Ukraine
Published Oct 12, 2023
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In W40 in the apple landscape, the 2023/24 campaign aims to increase apple harvest production in various countries, including France, Italy, and Catalonia. France is expected to harvest 1.5 million tons of apples, a 12% year-over-year (YoY) increase. Italy's South Tyrol consortium projects a 10% YoY increase in apple production. Catalonia, the main apple-producing area in Spain, expects 266.1 thousand tons in 2023, similar to the average of the last five years and 22% higher YoY. However, several hail storms have caused damage in Lleida, damaging infrastructure and breaking branches. High yields for good quality Gala and Golden apples are expected, but in smaller sizes due to the drought.

Moreover, Belgium's wholesale price of fresh Jonagold apples has dropped by 30.77% month-on-month (MoM) in Sept-23 to USD 0.78 per kilogram (kg) due to quality issues and a rainy growing season. The apple harvest in 2023 is forecasted to decrease by 14.9% YoY to 203 thousand tons in 2023 due to reduced cultivation area and production. The main reason for the price drop was the difficulty of the growing season, with heavy rains and a significant presence of apple scab, a common disease of apple fruits. Tridge predicts that Jonagold apple prices in Belgium will likely rise soon due to decreased supply and limited availability of high-quality apples.

Poland's apple export volume decreased by 11% YoY in 2023, but the quality remains good, with enough output from export varieties reaching the international market. Some companies are planning to increase their market shares in Europe and target new areas, including India, South America, Thailand, Malaysia, and Indonesia. Greater labor availability is a significant challenge, but the country's agriculture and export companies will meet the expected quantity of Polish apples.

Ukrainian apple prices have risen significantly in 2023, with a record high of 61 to 75% YoY increase for various varieties. In the largest wholesale market in western Ukraine, "Shuvar" in Lviv, the Golden Delicious apple variety price stood at USD 0.44 to 0.55/kg (UAH 16 to 20/kg), a 75% YoY increase. Meanwhile, the Gala variety price increased by 69% YoY, for which they are currently asking USD 0.30 to 0.49/kg (UAH 11 to 18/kg). Ligol apple variety price rose by 67% to USD 0.44 to 0.49/kg (UAH 16-18/kg). The non-export Champion also saw a 61% increase. As a result, Ukrainian farmers resumed exporting fresh apples to Southeast Asia and the Middle East. Additionally, on average, the wholesale fruit prices in Ukraine at the end of 2022 were 98% YoY higher, mainly due to the devaluation of the Ukrainian hryvnia and increased logistics costs due to the Russian invasion.

In South Korea, the decline in apple and pear production in 2023 has led to high Chuseok market prices, with experts predicting that this trend will continue for the time being. During Chuseok preparations (September 15 to 27), apple and pear prices were more substantial than the previous year. At Garak Market in Seoul, a 5kg box of 'Hongro' apples was traded for an average of USD 50.68/5kg box (KRW 68,634/5kg box), 2.1 times higher than last year's Chuseok average and twice the yearly average. 

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