1. Weekly News

Europe

Smaller Apple Harvest Expected Across Europe for 2024/25 Season

Europe's apple harvest for the 2024/25 season is expected to be smaller, with notable declines in Poland, Germany, the Netherlands, Belgium, and Greece. Poland is projected to see the most significant drop, with production down by 20% year-on-year (YoY). Germany, the Netherlands, and Belgium also expect reduced harvests, except in Germany's Bodensee area, where a 13% increase is anticipated. High temperatures and a mild winter have affected Greece's apple production and fruit size. Meanwhile, Italy, Spain, and France are experiencing better conditions, with Italy's output only 1% lower than last season.

Hungary

Hungary's Reduced Apple Harvest Results in Higher Prices

Hungary’s apple harvest is significantly smaller in 2024, projected at 300 thousand to 350 thousand tons, down 150 thousand tons from 2023. Of this figure, only 90 thousand to 100 thousand tons are food-grade, with the rest classified as industrial-grade apples. With a domestic processing capacity of 400 thousand tons and an annual consumption of 110 thousand tons. As a result, Hungary is expected to export high-quality apples at high prices due to strong demand in Central Europe. At the same time, lower-priced imports will likely enter the domestic market to meet consumer demand, as declining purchasing power makes it harder for locals to pay higher prices. FruitVeB predicts a 25 to 35% increase in producer prices for table apples, which could result in a 10 to 15% rise in-store prices.

India

Apple Prices in India Dropped by 50% MoM Amid Surging Supply

Apple prices in India have dropped nearly 50% month-on-month (MoM), driven by increased supply from Himachal Pradesh and the upcoming Kashmir harvest. At Delhi's Azadpur wholesale market, top-quality apple prices stood at USD 0.96 to 1.08 per kilogram (INR 80 to 90/kg). Anticipated duty-free imports from Afghanistan further impact prices, and recent heavy rainfall in Shopian, Kashmir, may delay arrivals. While concerns about the summer heat and drought in Himachal Pradesh drove price hikes in Jul-24, the recent supply surge has resulted in a sharp price decline.. Big corporations are delaying apple procurement this year due to concerns over quality and past storage losses. The expected rise in Afghan apple imports will likely continue affecting domestic prices, with experts suggesting a potential increase in import duties to protect local farmers.

Switzerland

Switzerland Anticipates Strong Apple and Pear Harvest for 2024

Switzerland expects a robust apple and pear harvest for 2024, with the season's peak anticipated from mid-Sep-24 to the end of Oct-24. The 2024 apple harvest is forecasted to reach 103,589 metric tons (mt), a 3% increase from 2023, while the pear harvest is expected to hit 16,364 mt, marking a 17% rise. The fruit quality and sizes are reported to be excellent. The Gala apple variety remains the most abundant, constituting 29% of the total apple harvest, followed by Golden Delicious at 14% and Braeburn at 11%. Among pears, Beurré Bosc leads with 34%, Conférence at 25%, and Louise Bonne and Williams at 11%. This year's harvest forecasts were generated using the new AI-supported PreApPear application. The app, developed by Prognosix in collaboration with the Swiss Fruit Union and SWISSCOFEL, estimates harvest potential by variety and plot.

South Korea

Autumn Heatwave Damages Hongro Apples in South Korea

Boeun County, South Korea, is facing significant sunburn damage to Hongro apples due to an unusual autumn heatwave and intense sunlight. Around 20 to 30% of apple orchards have been affected, causing discoloration and rotting. The local government is purchasing 100 tons of damaged apples at USD 0.34/kg (KRW 450/kg) for processing by the Chungbuk Horticultural Cooperative Association to support farmers. Boeun County is home to 487 hectares (ha) of apple orchards, including 175 ha dedicated to the early-maturing Hongro variety. The county is actively working to reduce the impact on its growers.

Ukraine

Ukraine's Apple Prices Dropped Amid Low Demand

In Ukraine, the apple market is declining due to weak demand and an oversupply of autumn varieties. Over the past three weeks, this trend has led to lower selling prices. As of September 7, 2024, high-quality apples are priced between USD 0.29 to 0.44/kg (UAH 12 to 18/kg), a 15% week-on-week (WoW) decrease. The price drop is mainly due to the need to sell autumn apples, which are not suited for long-term storage. Currently, apple prices have fallen to similar levels as the same time in 2023.

2. Weekly Pricing

Weekly Apple Pricing Important Exporters (USD/kg)

Yearly Change in Apple Pricing Important Exporters (W37 2023 to W37 2024)

Italy

In W37, apple prices remained stable at USD 1.85/kg since W34 with no MoM change. However, YoY prices declined by 22.8%. The MoM stability reflects a balanced supply and demand dynamic, supported by the VOG Consortium's consistent availability and reduced competition in European markets. The significant YoY decrease is due to the strong performance of the previous season and increased availability from the new harvest, which has eased market pressure and contributed to the lower price comparison.

United States

In W37, apple prices in the United States (US) decreased by 14.31% WoW and MoM to USD 1.32/kg, down from USD 1.54/kg in W36. This decline reflects a shift in market dynamics following a period of stability. Increased supply from Ontario, combined with the completion of early harvests, has led to a surplus, exerting downward pressure on prices. Despite the ample supply, the YoY price increase of 16.70% remains due to ongoing market adjustments and residual supply constraints from previous seasons.

Chile

In W37, Chile's apple prices declined by 1.11% WoW to USD 1.79/kg, compared to USD 1.81/kg in W36. This drop is due to a continued easing of supply constraints and a gradual adjustment in the market. The 1.81% MoM decline reflects the ongoing stabilization of supply levels, while the 20.96% YoY decrease is due to a high price base from the previous year, which was inflated by more severe production challenges. The current price trend indicates a market gradually balancing reduced production with sustained demand.

South Africa

In W37, South African apple prices declined by 6.30% WoW to USD 0.64/kg, compared to USD 0.68/kg in W36. This decrease is due to a continuation of increased production levels and a subsequent rise in market supply, leading to a 4.65% MoM decline. The 49.58% YoY drop reflects a substantial surge in apple production compared to the previous year, resulting in an oversupply that has put significant downward pressure on prices.

France

Apple prices in France declined by 9.41% WoW to USD 1.68/kg in W37, reflecting a slight 0.16% YoY decrease. This decrease follows the trends observed in W36, where the overall production decline in most regions, including Nouvelle-Aquitaine and Occitanie, has put downward pressure on prices. Despite the overall reduction in production, specific areas like Provence-Alpes-Côte d'Azur and Auvergne-Rhône-Alpes have experienced increased production, which could be contributing to stabilizing or slightly lowering prices in the short term. However, the anticipated overall decrease in supply due to various regional challenges suggests that the price decline might be limited, with future increases likely as the season progresses.

3. Actionable Recommendations

Focus on Diversifying Apple Varieties and Enhancing Storage Solutions

Ukrainian apple producers should diversify their varieties to include those better suited for long-term storage and market demand throughout the year. Investing in advanced storage solutions, such as controlled atmosphere storage, can help manage oversupply and extend the marketable period of apples. By implementing these measures, producers can stabilize prices and better align supply with demand, mitigating the impact of current price declines.

Adjust Procurement Strategies and Advocate for Import Duty Protection

Indian apple distributors and big corporations should adjust their procurement strategies by closely monitoring market conditions and timing purchases to avoid oversupply. Better quality control measures, such as rigorous inspection and sorting processes, can ensure that only high-quality apples are procured. Additionally, investing in advanced storage solutions, like climate-controlled facilities, can minimize losses and maintain apple quality. They should advocate for increased import duties on Afghan apples to protect local farmers and stabilize prices. These steps will help balance domestic market conditions and support the local apple industry.

Enhance Domestic Processing Capacity and Strategize for Imports

Hungarian apple producers and policymakers should focus on enhancing domestic processing capacity by investing in new technologies such as automated sorting systems and advanced juicing or puree production equipment. Expanding existing facilities to increase throughput and efficiency can also be beneficial. Additionally, developing strategies for importing lower-quality apples will help meet domestic demand. Ensuring that high-quality apples are exported at premium prices will optimize revenue. This approach will help manage the impact of reduced domestic harvests and stabilize the market.

Sources: Tridge, Freshplaza, Eastfruit, Agraragazat, Economic times, Fructidor, Swissfruit, Yna, Agrobusiness