1. Weekly News

Chile

Chile's Apple Industry Sees Renewal with High-Density Planting, Mechanization, and New Market Focus

Once the second-largest global exporter in 2006, Chile's apple industry has grown continuously after years of decline. Improved apple prices are sparking interest in new plantings and orchard renewals, with a focus on high-density planting and mechanization. The main production area spans Curicó in the Maule region, extending southward from Linares to Traiguén.

In a recent technical tour to Italy, Chilean producers studied high-density orchards and advanced irrigation systems to reduce labor costs and improve productivity. Chile's apple industry is also shifting towards the Latin American market, capitalizing on cold storage technology to meet year-round demand and exploring new markets to boost profitability.

South Africa

South African Apple Exports to Taiwan Suspended Following Codling Moth Detection

South African apple exports to Taiwan have been suspended again following the detection of a live codling moth (Cydia pomonella) by Taiwan's Animal and Plant Health Inspection Agency (APHIA). This decision comes only months after shipments resumed in May-24, following a year-long suspension due to previous codling moth incidents.

On October 24, South Africa's Department of Agriculture, Land Reform and Rural Development (DALRRD) was notified and instructed to halt phytosanitary and pre-cooling certifications immediately. Shipments already in route would still be received under strict inspections.

The suspension is a setback for South Africa, which exported 9,681 metric tons (mt) of apples to Taiwan in the 2022/23 season. In the interim absence of South African apples, the United States (US) gained a significant market share, providing 64,694 mt and capturing 46% of Taiwan's apple imports in 2023. With the US apple season underway, American exporters will likely fill the renewed gap in Taiwan's market.

South Korea

South Korea's Fuji Apple Shipments Begin with Higher Production and Lower Prices Expected Despite Reduced Large-Fruit Yield

South Korea's Fuji apple shipments have begun from Chungju. Due to favorable weather, production is up by 18 to 22%, resulting in expected lower prices than last year. In 2024, yield is approximately 20 mt per hectare (ha), totaling around 15,400 mt over 770 ha, although the proportion of large, high-marketability fruit is projected to decrease due to summer heat.

South Korea and Taiwan Ease Quarantine Rules, Streamlining Apple and Pear Exports with Year-Round Sorting

South Korea has reached an agreement with Taiwan to ease quarantine requirements for apple and pear exports. This allows for year-round simultaneous sorting of export products destined for Taiwan. Previously, strict quarantine regulations required separate sorting to prevent pest contamination, increasing costs and complicating logistics, especially during the Chuseok holiday season when export and domestic demand overlap.

The new agreement, set for swift implementation, aims to streamline processes for approximately 8 thousand mt of pears and 500 mt of apples exported to Taiwan annually. The Quarantine Agency expects this change to reduce costs and logistical challenges for exporters significantly.

Taiwan

Taiwan's Apple Imports Projected to Reach 145 Thousand MT in 2024/25 as US Gains Market Share Due to South African Suspension

Taiwan imports over 135 thousand mt of apples annually, with domestic production accounting for less than 1% of supply. For the 2024/25 marketing year (MY), Taiwan's apple imports are forecasted to reach 145 thousand mt, with stable domestic production at 1,250 mt. The US and New Zealand are Taiwan's primary suppliers, followed by Japan and Chile.

In MY 2023/24, Taiwan's apple imports totaled 137,727 mt, with the US acquiring a 46% market share (64,694 mt) due to competitive pricing and a temporary suspension of South African apple imports following codling moth detections. This suspension left South Africa's supply nearly absent, allowing the US to fill the gap.

Ukraine

Ukrainian Apple Exports Face Competition from Italian Varieties While Targeting Middle Eastern and Emerging Markets

Ukrainian apples continue to be primarily exported to the United Arab Emirates (UAE), Saudi Arabia, Uzbekistan, and Iraq, with potential growth in European deliveries this year. However, competition from Italian apples, which are priced lower, remains significant as Italian producers have increased supply volumes. Ukrainian apples are often seen as a more cost-effective alternative when Italian apples are priced higher, with both varieties considered similar in quality. Key export varieties from Ukraine include Granny Smith, Fuji, and Royal Gala, suitable for long-term storage and year-round availability.

2. Weekly Pricing

Weekly Apple Pricing Important Exporters (USD/kg)

Yearly Change in Apple Pricing Important Exporters (W44 2023 to W44 2024)

Italy

Italy's apple prices recently declined to USD 1.79 per kilogram (kg), marking a 5.29% week-on-week (WoW) drop from USD 1.89/kg. This decrease aligns with a strong supply of diverse apple varieties in Italian markets, including popular types like Fuji and Annurca. Despite the price reduction, demand remains robust, especially for regional varieties. As the market reaches peak seasonal production, apple prices in Italy show relative stability compared to the previous year at USD 1.80/kg, indicating a balanced supply-demand equilibrium across the sector.

Chile

Chile's wholesale apple prices have notably declined, dropping to USD 1.83/kg in W44, a 6.15% WoW decrease and a 35.56% year-on-year (YoY) reduction. This decline comes after Chile's apple industry experienced years of stagnation, but recent improvements in pricing have led to orchard renewal and increased planting. Additionally, the industry is leveraging cold storage technology to meet year-round demand, which could help stabilize pricing and improve profitability in the long term.

South Africa

In W44, South Africa's apple prices increased by 16.42% WoW, reaching USD 0.78/kg from USD 0.67/kg the previous week. However, prices are still down 39.53% YoY, compared to USD 1.29/kg in the same period last year. The country's agricultural sector has seen a significant decline in green apple production, particularly in Granny Smith varieties, which have experienced a 25% drop from 2013 to 2022. This reduction contrasts with the increasing popularity of red apple varieties, such as Royal Gala and Kanzi, which have steadily risen during the same period. Other red apple varieties, such as Fuji and African Carmines, have also experienced growth, while varieties like Braeburn and Oregon Spurs have faced a decline. These shifts in production highlight changing consumer preferences and market trends within the South African apple industry. Furthermore, export challenges, such as the recent suspension of South African apple shipments to Taiwan due to the detection of codling moths, could significantly impact the market.

France

France's apple prices increased, reaching USD 1.53/kg in W44, representing a 12.50% WoW rise and a 6.99% MoM increase from USD 1.43/kg in W41. This upward trend reflects both domestic market dynamics and international promotional efforts. A significant promotional campaign aimed at boosting the visibility of French apples in Thailand will commence on Dec-24. This initiative follows various activities organized by France's Fresh Fruit and Vegetable Trade Association (Interfel) throughout the past year. These activities have included press events, in-store samplings, and roadshows, which collectively aim to enhance consumer awareness and appreciation for the quality and diversity of French apples. These promotional strategies are forecasted to further support French apple prices by improving demand in international markets, potentially stabilizing or increasing prices in the face of global competition.

3. Actionable Recommendations

Leverage Technological Advancements in Orchard Management

Apple producers, particularly in regions like Chile, should continue adopting high-density planting and advanced mechanization to enhance productivity and cost efficiency. As demonstrated during Chilean producers' recent technical tour in Italy, investing in precision farming and irrigation systems can reduce labor costs and increase yields. By focusing on technological solutions for orchard management, apple producers can improve long-term profitability and respond more effectively to fluctuating market prices, ensuring competitiveness in existing and new markets.

Diversify Export Markets and Strengthen Cold Storage Capabilities

With the global apple market becoming increasingly competitive, including disruptions like South Africa's suspension from Taiwan, producers should focus on diversifying their export markets and investing in cold storage technology. Chile, for instance, can further capitalize on the Latin American market while exploring other growing regions such as Asia and the Middle East. Strengthening cold storage capabilities will enable producers to supply apples year-round, reducing reliance on seasonal markets and mitigating the impacts of supply disruptions, such as those seen with Taiwan's temporary exclusion of South African apples.

Sources: Tridge, Fruitnet, Agri Focus Africa, YNA, Agrinet, Portal Fruticola, Agro Business, East Fruit,