W1: Weekly Apple Update
Europe
European Apple Supply Is Down by 8.6%, According to WAPA (Jan 5)
The World Apple and Pear Association (WAPA), released December 2022 apple and pear inventory numbers. The figures show that in Europe apple stocks have decreased by 8.6% compared to 2021 to 4.48M MT, while pear stocks have increased by 10.1% to 721.71K MT. In the US, apple stocks as of December 1, 2022 amounted to 1.78M MT (-6.8% compared to 2021), while pear stocks showed a slight decrease to 206.79K MT (-0.5% less than 2021). This trend can be explained by the decrease of Jonagold (-23.7% compared to 2021), Jonagored (-25.2%), Gala (-17.5%) and Golden Delicious (-18.6%), with several varieties reporting a decrease compared to 2021, most notably Gloster (-66.3 %) and Idared (-24.5%). Cripps Pink rose 29.1%, Elstar 24.4% and Red Jonaprince 19.2%.
Poland
Prices of Apples in Producer Groups at the Turn of the New Year in Poland (Jan 2)
It is a sad standard that in fertile seasons the higher purchase price applies to (after sorting) apples over 75, not 70 mm. The price lists of producer groups are invariably dominated by Gala, and more specifically by striped Gala sports. Fruit growers will most often meet with a rate of USD 0.41/kg (PLN 1.80). It applies to apples (after sorting) from 70 to 95 mm. The high demand for the variety continues to be noticeable. Another "ceiling" in the price lists is USD 0.27/kg (PLN 1.20). The rate applies to overweight Gala sports with blurred blush, Red Delicious or Golden Delicious sports. The last variety, however, fetches slightly higher prices. The prices offered for the most widely cultivated varieties have not increased. It is still usually USD 0.18- 0.21/kg (PLN 0.80 - 0.90). It is worth recalling that the average after sorting with storage costs is well below the sum of the total costs.
Purchase Prices for Industrial Apples Do Not Go Hand in Hand With the Boom in Apple Concentrate (Jan 3)
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 procurement prices of industrial apples and prices of apple concentrate over the years, there is 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 USD 0.23/kg (PLN 1.00).
Which Varieties of Apples Dominate Polish Cold Stores (Jan 4)
The WAPA Association has published a report showing that as of December 1, 2022, there were still 1.42M MT of apples in Polish cold stores. Throughout the Union, apple stocks as of December 1, 2022 amount to 4.48M MT of apples. At the same time in 2021, apple stocks across the EU were higher and amounted to 4.90M MT. The largest stocks of apples are in Poland with over 1.4M MT, followed by Italy with approximately 1.3M MT and France with about 637K MT. Compared to last year, there are currently 275K MT in Polish cold stores. According to the WAPA report, as of December 1, 2022, the Red Jonaprince variety dominated Polish warehouses with 270K MT. In second place is Red Delicious with about 230K MT in cold stores. The next place is taken by Golden Delicious, whose stocks amount to 220K MT. The Gala is next with 160K MT and Champion with 120K MT. Slightly less than 90K MT was Ligola in cold stores.
An Exceptionally Difficult Year for Fruit Growing, Many See No Hope for Themselves (Jan 5)
Difficulties with the sale of apples, increase in energy and fertilizer costs, lack of workforce: these are just some of the problems that occurred last year in Polish fruit growing, Mirosław Maliszewski, president of the Association of Polish Fruit Growers, told PAP. As noted by the head of the union, problems with the export of Polish apples to eastern markets began in 2014, after the annexation of Crimea. After Russia's attack on Ukraine in February last year, and drawing Belarus into the war, almost the entire communication route for the export of Polish fruit was interrupted. Sanctions, counter-sanctions, inability to enter trucks, official ban on trade meant that overnight in the middle of the sales season, fruit growers were cut off from the most important market for shipping apples, emphasized Maliszewski.
Orchard Growers in the West Are Clearing Their Orchards, What About Gala? (Jan 7)
Gala will cease to be an apple sought after and bought at a good price in the West. Golden may remain at the current level, but Red Jonaprince is starting to be an apple in the West, like Gloster in Poland, says Cezary Rokicki. The majority of fruit growers believe that the situation is dire, there are numerous offers for sale of entire farms, which no one wants to buy; voices are getting louder that the best solution would be grubbing up orchards, necessarily with an additional payment from EU funds.
Spain
The Harvest of Pink Lady Apples in Spain Will Be Between 20% And 30% Lower This Year (Jan 2)
The Pink Lady apple harvest, which is produced mainly in Lleida and Girona, will be between 20% and 30% lower than last year, due to the weather conditions that Spain has suffered, according to grower estimates. Specifically, Joan Serentil, producer of Pink Lady in Lleida, has advanced that the harvest forecast will be around 20% to 30% less, which will mean a harvest in Lleida of 5K MT, while in Girona they hope to reach 7K MT, according to Alex Creixell, a producer in this area. In this way, the weather this year has affected the harvest, since the frost suffered in April and the extreme temperatures of summer have reduced production.
Moldova
Moldovan Fruit Exporters Will Double the Number of Sales Markets in 2022 (Jan 2)
"We were able to export fewer apples in November, which is primarily due to the small harvest this year," says Lurie Fala of Moldova Fruct, the association of fruit growers and exporters of Moldova. There is of course the smaller harvest. "That is entirely due to the drought," explains Lurie. "Last year we picked 665K MT of apples in Moldova, this year 2022, with 405K MT, we suddenly have 40% less. Most orchards are not irrigated, so the results depend to a large extent on the amount of rain." Furthermore, exports naturally suffer from the consequences of the war. Not only was logistics to Russia much more complex since the start of the war, an embargo was added in August. It was imposed only on Moldovan fruit grown on the right side of the Dnestr River and is the third embargo since 2006. Where as much as 95% of apples were sold on the Russian market in 2021, that figure was threatening to zero for the new crop to fall. With the last harvest, that amount is zero. So a solution had to be found overnight for the apples for export that were about to be picked.
The Actual Export of the Moldovan Apple in December Was Lower Than the Forecast (Jan 3)
According to the information of the organizations of agricultural producers of Moldova, based on the operational data of the customs service, in December 2022, about 8K MT of apples were exported from the country. This is only 1K MT more than the November export and significantly less than the December export predicted by fruit growers associations, about 10-12K MT. In December 2021, external supplies of apples from Moldova reached 19K MT, in December of a dry and lean 2020, the same 8K MT. In the structure of Moldovan apple exports last month, about 2/3, almost 5K MT went to the CIS markets.
Argentina
The Export of Apples From Río Negro and Neuquén in 2022 Was Lower Than in 2021 (Jan 4)
The National Agri-Food Health and Quality Service (Senasa) reported that during 2022 the export of pears decreased 10% and that of apples 19% compared to 2021, in the North Patagonia region integrated by Río Negro and Neuquén. According to the Statistical Monthly of that health agency, the annual amount in 2022 for the export of apples accumulated to 60.09K MT, and in 2021 had been 74.34 MT. The main destinations for the export of apples were Brazil, where 17.72K MT were placed; Bolivia with another 10.82K MT and Paraguay with 7.55K MT.
Canada
Stocks of Organic Storage Apples in British Columbia, Canada Are Dwindling Fast (Jan 2)
It hasn't been an easy season for organic apple growers and shippers in British Columbia. "This year, the volume of organic apples is about the same as last year. Overall, the apple crop of both this year and last year is down about 40%. Last year's crop was affected by a long heat wave in the summer and this year due to a very cold, wet spring and poor pollination and then a brief heat wave during the ripening period," said Stefan Misse of Discovery Organics. In mid-November, temperatures in British Columbia dropped significantly, from about 20 degrees Celsius to below freezing, going from unusually high to unusually low in a week. "The fruit trees didn't have a chance to go dormant. There was a lot of snow with the leaves still on the tree," he says.
Ukraine
Competition in the World Apple Market Will Be High (Jan 4)
Experts in the field single out the countries of the Middle East, Portugal and Spain as promising markets for Ukrainian apples. Maria Lakeyeva, an expert on the fruit and vegetable market of Ukraine, tells about this in the review of the magazine "Gardening in Ukrainian". "However, competition will be quite high in these markets in the current season," she predicts. According to Lakeyeva, the situation with exports this year is quite difficult, and the issue is not only complicated logistics. Although Ukraine harvested a fairly good harvest of apples this season and could offer significant volumes of fruit to the international market, most European countries also harvested a good harvest.
Russia
In the Next Five Years, Russia Can Fully Provide Itself With Apples (Jan 5)
In 2022, the regions of Central Russia where apples are produced experienced unique weather conditions; this has not happened in the last 50 years. Due to the cold spring, pollination did not pass in many horticultural farms. “Usually flowering begins on May 9th and ends on May 20th. Last year, flowering began on May 15, and ended only on June 15, although the ovary usually falls in the middle of the first summer month in the Center,” he told Agro Investor President of the Association of Gardeners of Russia Igor Mukhanin. “Of course, if the spring had been warmer, then last year's harvest would have been better. Some farms almost did not receive apples, although there are those that have harvested quite a good harvest due to proven agricultural technology”, the expert argues. “At the same time, the apple harvest in Russia still grew relative to 2021. Every year we increase their production by 150-350K MT. We believe that at this pace in the next five years we will fully provide ourselves with apples.” It is still difficult to say what to expect from the coming year. If there are no severe frosts, below -35 degrees, then, according to the head of the union, one can count on a good harvest.
Indonesia
The Chinese population in Indonesia is less than 5%, however, the demand for fresh fruit from China usually surges 3-4 weeks before the Chinese new year, which will be in W3 2023. Major importers have begun importing their favorite brands from China to fulfill the yearly surge in demand for apples and oranges. The price of navel oranges can surge up to USD 18-20/kg in retail before CNY.
Indonesian Fruit Import Quota Expected to Be Available in February 2023 (Jan 3)
The fruit products imported to the Indonesian market are currently facing a challenge due to the import quota that expired on December 31st, 2022. In the meantime, buyers are only able to import non-quota fruits such as pears, strawberries, blueberries, and dates. They can also place orders for non-perishable products with longer shelf life, such as apples. The product is kept in the country’s origination warehouse while waiting for a new quota by the government in February 2023. Importers mentioned that the quota for tropical fruits such as longan and mango is difficult to obtain and usually takes longer to be issued since the government intends to protect domestic products.
