W49 Apple Update: Global Fresh Apple Markets Navigate Challenges, From Russia’s Moldova Ban to EU’s Lifting Extraordinary Duties to Weather-Induced Declines and Price Surges

Russia's Ban on Moldovan Imports Sparks Economic Crisis, While EU Demand Propels Moldova's Fruit Exports

Citing quarantine concerns, Russia's complete ban on Moldovan fruits and vegetable imports commencing on Dec-23 poses economic consequences for both nations. Moldova derived substantial revenues from fruits and vegetables, reaching USD 112 million in 2020, with 75% from Russia, particularly from fresh apples. The ban's impact on Moldova's USD 70 to 80 million apple exports is evident. Diversifying exports is challenging, especially concerning apple varieties, necessitating improved technologies.

While short-term challenges may arise, Moldova's fruit business is poised for long-term strength and diversification. Comparatively, Russia faces higher apple prices and challenges replacing Moldovan products, impacting consumers and importers. The ban's broader impact includes the absence of affordable grapes, revealing potential consequences for Russian consumers due to political decisions. On the other side, Moldovan apple exports to the European Union (EU) surged from around 1 thousand mt in 2021 to nearly 11 thousand mt in 2023, reflecting increased demand.

Early Gala Depletion, Turkey May Seen Growth Potential Post New Year Amid Global Competition

The Turkish fresh apple market faces a surge in demand for Gala apples, depleting stocks early in the season. Turkey is currently offering Red Delicious, Golden Delicious, and Granny Smith varieties, with India as the primary export destination. However, weak demand in India is attributed to abundant local apples and increased European and United States (US) suppliers. Despite heightened competition, Turkish exporters anticipate an upswing in demand for Turkish apples post the New Year, especially for the Red Delicious variety. Turkey's overall apple production remains stable, with 4.7 million tons expected for 2023, fostering a resilient export market, notably India, Russia, and Iraq.

Ukraine Faces 24% Surge in Fruit Basket Costs, Led by 42% Spike in Apple Prices.

The cost of a fruit basket in Ukraine witnessed a 24% increase compared to Dec-22, with apple prices surging the most, averaging a 42% rise. Certain varieties experienced over a 50% increase. Market participants suggest this trend is likely to continue, prompting consumers to anticipate further hikes in apple prices. Contributing factors include a sharp decline in EU apple production, coupled with consecutive years of reduced harvests in China and a significant drop in India's apple production. Low carryover stocks in European storage facilities at the season's outset also played a role in setting elevated starting prices.

El Niño Challenges Brazilian Apple Industry: Weather Worries Threaten Quality and Harvest of Top National Producer

Influenced by the El Niño phenomenon, adverse weather conditions raise concerns for Santa Catarina, Brazil, the largest national apple producer. Despite expectations of excellent quality and flavor, storms and hail are impacting gala and Fuji apple harvests. Fruit falling due to rain and potential variations in sugar content pose challenges. The producers note the need for favorable weather for optimal fruit development, emphasizing concerns about forecasted rain with strong winds. The report underscores the vulnerability of the apple market in the region to unpredictable weather patterns.

UC Studies Provide Key Insights into 2023 Apple Processing Costs

The University of California Agriculture and Natural Resources, UC Cooperative Extension, and UC Davis Department of Agricultural and Resource Economics recently released two studies aiding Central Coast growers. These studies, "2023 Sample Costs to Produce and Harvest Organic Apples for Processing" and "2023 Sample Costs to Produce and Harvest Apples for Processing," offer essential baseline information for estimating costs, facilitating production loans, projecting labor expenses, and navigating regulatory programs. Growers can access these valuable resources to enhance decision-making in the dynamic landscape of the fresh.

Strong Demand and Limited Supply Propel Fresh Apple Prices, Providing Relief for Belgian Growers in the 2022/23 Season

The Belgian fresh apple market for the 2022/23 season experiences improved prices due to decreased supply and increased demand. BelOrta (the largest cooperative fruit and vegetable auction in Belgium and the European market leader) highlights the industry's active purchasing, emphasizing the absence of stocks at the season's beginning. The combination of a disappointing European harvest and robust demand contributes to elevated prices, offering relief to apple growers. This positive start signals a favorable season for apple and pear growers in 2022-2023.