1. Weekly News

Europe

European Market Saturation Puts Pressure on Golden Delicious Apple Prices

Golden Delicious apples are currently facing a challenging market due to an oversupply in Europe, leading to sharply reduced prices. The European stock of Golden Delicious apples surged by 70% year-on-year (YoY), reaching 372 thousand tons this 2023/24 season. At the start of Jun-24, Poland stored 75 thousand tons of Golden Delicious apples in cold storage facilities. This high supply has created a situation where apples are often sold at notably low prices, with some apple growers expressing concern over the market dominance of this variety. The increased inventory and lower cumulative exports from the European Union (EU) could drive prices down further and reduce demand in the coming months.

France

French Apple Stocks Rise While Exports Surged Despite High Prices

French apple stocks were 19% YoY higher at the end of Jun-24, while the pear marketing season concluded with nearly zero stocks. Despite the increased apple inventory, grower prices remained relatively high, with notable peaks in May. French apple growers sold almost 50 thousand tons of Golden Delicious and Pink Lady apples in Jun-24, leaving 84.3 thousand tons available. Additionally, last year's low stocks contributed to higher prices. Moreover, French apple exports surged, reaching over 300 thousand tons from Aug-23 to May-24, with half going to EU countries. The Netherlands emerged as the third largest buyer of French apples in the EU, while exports to the United Kingdom (UK) played a more significant role for France.

Mexico

Mexico’s Apple Production Faces Challenges Due to Low-Cost Imports

According to the General Director of Grupo La Norteñita, Mexico's apple production industry is struggling due to the influx of imported apples being sold at prices below production costs. While projections estimate a harvest of 28 to 30 million boxes in 2024, Grupo La Norteñita warns that prices will suffer due to United States (US)-imported apples being sold in Mexico for less than half their production cost. The Regional Agricultural Union of Fruit Growers of the State of Chihuahua (UNIFRUIT) is also working on a formal complaint against such dumping practices.

Moldova

Early Apple Harvest in Moldova for 2024 Falls Below Average in Recent Years

Early apples in Moldova have been available since Jun-24, but their quality has been below expectations. From Jun-24 to mid-Jul-24, the average wholesale price of Moldovan apples ranged between USD 0.45 to 0.51 per kilogram (MDL 8 to 9/kg) but decreased as the season progressed. In neighboring Ukraine, prices are similar, while in Poland and Russia, prices are nearly double. Moldovan apple export to European and other foreign markets is slow due to reduced old and unproductive orchards, causing the share of early varieties to drop to 5 to 7%. The domestic market remains the primary outlet for Moldovan summer apples, with uncertainties about their use as dessert or industrial products. Despite the launch of five or six factories producing apple concentrate, supply volumes are low, and high prices for summer industrial apples are expected to persist due to their inferior quality compared to autumn varieties.

Spain

Apple Harvest in Catalonia, Spain Anticipated to Rise in 2024

Catalonia's apple harvest for 2024 is projected to reach 268.7 thousand metric tons (mt), marking a 3% increase compared to the average over the past five years and a 13% YoY rise. Growth is expected across all varieties, especially Fuji, Granny Smith, and Gala. While the harvest season will vary by region, it is anticipated to align with typical annual dates. Girona and Lleida, the two regions with the highest apple production, are expected to contribute 36% and 64% of the total harvest, respectively, underscoring their strategic importance in the region.

2. Weekly Pricing

Weekly Apple Pricing Important Exporters (USD/kg)

Yearly Change in Apple Pricing Important Exporters (W31 2023 to W31 2024)

Italy

The apple price in Italy has remained stable at USD 1.91/kg since W29, with a minimal month-on-month (MoM) change of a 0.93% increase. However, a significant 21.20% YoY price decrease has occurred. Despite the recent price stability, overall production quality has decreased, resulting in a more excellent supply of lower-quality apples that tend to drive prices down. The oversupply in Europe and increased stock levels from previous seasons have exerted downward pressure on prices. Although current prices are steady, the high available stock levels from earlier periods have contributed to the YoY lower average prices. Market adjustments, such as improved distribution efficiency and a focus on higher-quality produce, have stabilized prices in the short term but have not fully counterbalanced the broader price decrease experienced over the past year.

United States

In W31, apple prices in the US have remained stable at USD 1.56/kg since W22, with no MoM change and a 9.63% YoY increase. This stability highlights the effectiveness of strategic management in navigating increased production levels and sustaining robust export activities. The absence of MoM change indicates that the market is well-balanced, with consistent pricing reflecting the successful handling of supply and demand. The significant YoY increase underscores the strong and growing demand for US apples, supported by efficient distribution and advanced storage solutions. Moreover, the continued strong exports to primary markets, including Mexico, Taiwan, and India, have helped prevent market surpluses and maintain price stability, contributing to the overall YoY rise.

Chile

Apple prices in Chile have increased by 4.88% week-on-week (WoW) to USD 1.32/kg in W31, compared to USD 1.26/kg in W30. Additionally, there is a 9.31% MoM increase. The higher prices in Chile are due to production challenges, including reduced planted areas and poor pollination in the EU, which have limited the global supply of high-quality apples. Despite the oversupply in Europe, ongoing strong global demand and Chile's ability to adjust to these market conditions have supported the price increase.

France

In France, apple prices have decreased by 7.14% WoW and MoM to USD 1.42/kg in W31, compared to USD 1.53/kg in W30. The price drop is due to the higher inventory levels and the conclusion of the pear marketing season, which may have shifted demand towards apples. Despite this decrease, high grower prices earlier in the year and robust export performance, including significant volumes sent to EU countries and the UK, have helped mitigate potential price pressures. The market continues to adjust to the larger supply, and the lower prices reflect the current balance between inventory levels and ongoing demand.

3. Actionable Recommendations

Improve Moldovan Apple Quality and Expand into New Export Markets

Moldovan apple producers should focus on enhancing quality and exploring new export markets to address the issues with early apple varieties. To improve quality, producers should invest in orchard upgrades, such as planting disease-resistant apple varieties like Florina, Liberty, and Enterprise, implementing advanced irrigation systems, and adopting precision farming techniques. Quality control measures should include rigorous sorting and grading processes to ensure that only high-quality apples reach the market. Additionally, targeting emerging markets in Asia, such as China and India, and regions with high demand for apples, like the Middle East, can help boost export volumes and stabilize prices. This approach will mitigate the impact of low-quality apples on the domestic market and improve overall profitability.

Diversify Export Markets to Combat Price Pressures in Mexico

The Mexican apple industry should prioritize diversifying export markets to counteract the impact of low-priced US-imported apples affecting local prices in Mexico. By identifying and targeting new markets such as Canada and Central America and exploring opportunities in emerging markets like Southeast Asia and the Middle East, the industry can reduce reliance on the domestic market and buffer against the effects of dumping practices. This strategic move will help stabilize prices and strengthen the competitiveness of Mexican apple production.

Expand Export Focus to Stabilize French Apple Prices

French apple growers should focus on expanding their export markets to stabilize prices and manage high inventory levels. They should seek to increase exports to emerging markets such as North America and Asia while strengthening relationships with existing buyers in the EU, including the Netherlands and the UK. This approach will help balance supply and demand, reduce domestic inventory pressures, and potentially stabilize prices amidst high stock levels and fluctuating market conditions.

Sources: Tridge, Fruitnet, Eastfruit, Chilealimentos, Eldiariodechihuahua, Sad24, Nieuwe Oogst