W12 Apple Update: Ukrainian Apple Prices Increase by 9% to 15% YoY, Polish Apple Exports Surged in Jan-24, and South Korean Apple Farmers Struggle with Declining Production and Rising Prices

Published Mar 27, 2024

In W12 in the apple landscape, the global overproduction of apples is causing concerns, with a consultant highlighting the importance of maintaining quality in production. Moreover, US apple exports reached 1 billion lbs between Aug-23 and Jan-24, a 47% YoY increase. Due to US government policies, Mexico, India, Taiwan, and China saw significant growth in US apple exports. Meanwhile, Polish apple exports surged in Jan-24, while Ukrainian apple prices increased by 9% to 15% YoY. Chilean exporters face challenges in Peru due to changes in phytosanitary protocols. Lastly, South Korean apple farmers face challenges due to production decreases and rising prices, with the top 5% earning income while most suffer losses.

Prioritizing Quality Amidst Global Apple Overproduction

An international consultant specializing in apple and pear cultivation has raised concerns about the global overproduction of apples, which remains at 20% to 30% even in normal years. As apple consumption declines annually, particularly in Western Europe, the consultant emphasizes the importance of maintaining quality in apple production. To enhance the efficiency of apple production, the consultant suggests employing women as quality checkers to oversee the harvest's quality and volumes, as well as changing the harvesting methods, such as introducing controls during harvesting.

US Apple Exports Surged by 47% YoY in Jan-24

According to the latest United States Department of Agriculture (USDA) data released on March 19, 2024, United States (US) apple exports reached 1 billion pounds (lbs) between Aug-23 and Jan-24, a 47% year-over-year (YoY) increase. Mexico, the main destination for US apples, saw a significant increase from 205 million lbs in 2022/23 to 299 million in the current season. India's removal of 20% tariffs on US-grown apples led to a 16-fold growth in mid-season export volumes. The US government's trade policies, including the elimination of apple tariffs, have helped access potential markets worth nearly USD 6.4 billion. Moreover, US apple exports to Taiwan also saw impressive growth, rising from 51.5 million lbs in 2022/23 to 123 million in the current season. Meanwhile, US apple exports to China have grown by 84% this 2023/24 season, reaching over 19 million lbs, despite representing just over 1% of total exports.

Phytosanitary Protocol Changes Impact Chilean Apple Exports to Peru

Chilean exporters of apples are facing complications in sending volumes to Peru this 2023/24 season due to para-tariff barriers. These challenges stem from changes in protocols related to phytosanitary issues. Apple exporters are particularly concerned about the risk of containers being rejected at the border between the two countries, prompting them to take precautions to mitigate this risk.

Polish Apple Exports Surged in Jan-24

Poland exported 73 thousand tons of dessert apples and 1 thousand tons of industrial apples in Jan-24. Lithuania received the largest volume of exported Polish apples, totaling 5.6 thousand tons, followed by Germany and the Netherlands. Meanwhile, apple exports to Western Europe were significant, with France, Belgium, and the Netherlands importing nearly 10 thousand tons of apples in Jan-24. Furthermore, the depletion of the apple supply in local markets may have occurred earlier than anticipated, potentially affecting trading and pricing.

Ukrainian Apple Prices Surged by 9% to 15% YoY in Mar-24 Amidst Seasonal Changes and Economic Factors

Ukraine’s apple prices have seen a 9% to 15% YoY increase in the new harvest, with an average monthly price of USD 0.53 per kilogram (UAH 20.49/kg). This increase is due to factors such as seasonality, harvest quality, logistics costs, and import-export relations. The average monthly price of apples in Ukraine is USD 0.62/kg (UAH 23.90/kg) to USD 0.64/kg (UAH 24.75/kg), with a lower limit of USD 0.50/kg (UAH 19.35/kg).

Favorable weather conditions for growing apples may decrease prices as market supply increases. However, rising inflation may lead to an increase in food prices, including apples. Apple prices in Ukraine are forecasted to show relative stability, but more accurate forecasts can be made based on agrometeorological reports, world market trends, and Ukraine's economic situation.

Chungbuk Apple Farmers Face Challenges Amidst Decreasing Production and Rising Prices

In South Korea, the North Chungcheong Province Governor met with apple farmers and the Chungbuk Horticultural Cooperative President to discuss rising prices and potential solutions. Apple production in Chungbuk, South Korea, is experiencing a significant decrease due to high apple prices. The top 5% of farmers are earning income, while most suffer losses due to a significant decrease in production. The abnormal weather conditions have accelerated flowering and increased cold damage, resulting in a significant drop in production. Chungbuk Horticultural Cooperative's President emphasizes the need to prevent cold damage and implement measures to lower the freezing point by applying amino acids during the flowering period. Furthermore, they suggest turning idle public land into orchards and leasing them to young apple farmers to increase cultivation area.