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In W48 in the apple landscape, France faced significant orchard losses due to Storm Caetano, which caused structural damages and reduced harvest forecasts. However, overall production aligns with the three-year average. China anticipates higher apple production and exports in the 2024/25 season, with production supported by favorable weather, advanced cultivation practices, and competitive pricing, while increased exports to Russia compensate for reduced Russian harvests. Bolstered by innovations in sustainability and online sales, Moldova's apple exports to Romania grew as Romanian consumers favored high-quality and eco-friendly packaging. Peru formalized stringent import requirements for Brazilian apples, ensuring compliance with pest control and cold treatment protocols for safe trade. Meanwhile, a court temporarily blocked parts of a new H-2A visa rule in the US, easing administrative burdens for apple growers and ensuring the continuity of essential labor supply. As for weekly pricing in W48, apple prices in Italy increased due to reduced supply and a seasonal uptick in demand, mainly driven by holiday consumption. In the US, apple prices for WoW and MoM dropped as efforts to clear high stock levels and competition from seasonal fruits during the holiday season caused a decline, though prices increased YoY. Chile’s apple prices remained steady after earlier supply adjustments and the clearing of excess inventory. In South Africa, apple prices stayed stable, supported by strong local demand despite a YoY decrease due to oversupply and export disruptions. In France, apple prices rose slightly, aided by reduced supply and recovery in the local market, though high stock levels continued to exert downward pressure.

1. Weekly News

France

France Faces Apple Orchard Losses Due to Storm Caetano

Storm Caetano brought severe disruption across France, significantly damaging apple orchards in central western regions such as Sarthe, Indre-et-Loire, and Maine-et-Loire. Heavy snow collapsed anti-hail nets, damaging or destroying many trees. There will be an initial damage assessment, with the Ministry of Agriculture set to activate disaster recognition procedures to support affected growers. The French Apple Pear Association (ANPP) reported that the 2024 apple harvest forecast was revised down to 1.42 million tons, 3% lower than the estimates in Aug-24 and 5% below 2023 levels. Despite weather challenges, production aligns with the three-year average, though deficits are notable across Europe. Meanwhile, the French pear harvest has been revised to 134 thousand tons, exceeding the three-year average.

China

China's Apple Production and Exports Set to Rise in 2024/25 Season

China's 2024/25 season apple production is projected to reach 48 million metric tons (mmt), a 3% year-on-year (YoY) increase driven by favorable weather, improved cultivation techniques, and high-yielding varieties. Despite a decline in planted area to 1.91 million hectares (ha), the quality of apples, including premium varieties like Hongxiu Kiss, has improved significantly. Low market demand kept prices lower than last season, with Fuji apple prices dropping by USD 0.14 to 0.28 per kilogram (RMB 1 to 2/kg) during the Oct-24 harvest. Exports are expected to grow from 911 thousand metric tons (mt) in 2023/24 to 1.1 mmt in 2024/25, fueled by competitive pricing and strong demand in Southeast Asia, Central Asia, and Russia. Additionally, apple imports, primarily from New Zealand, are forecast to rebound to 105 thousand mt following supply recovery.

China's Apple Exports Surged as Russia Faces Harvest Challenges

China significantly increased apple and pear exports to Russia, reaching USD 6.2 million in Oct-24, up from USD 3.9 million in Oct-23. This growth follows reduced apple harvests in Russia due to May frosts, prompting the Russian Ministry of Agriculture to revise its forecast down to 1.7 million tons for 2023 from an initial 1.8 million tons. Over the first ten months of 2024, China exported USD 47.3 million worth of apples and pears to Russia, a 1.8-fold increase from the previous year. Despite current challenges, Russia aims to boost apple production to nearly 2 million tons by 2025 and 2.7 million tons by 2030.

Moldova

Shifting Consumer Trends Drive Rising Apple Exports from Moldova to Romania

Romania became a key market for Moldovan apple exports, with 20 thousand tons shipped in the first 10 months of 2024. Moldovan producers are using their proximity to Romania and the growing demand for high-quality apples, especially club varieties. Romanian consumers are increasingly interested in quality, taste, and eco-friendly packaging, preferring options without plastic and using cardboard packaging. Fruits and vegetables comprise 8.1% of Romania's consumer spending, with sales rising by 14% YoY. The growth of local cooperatives and innovations in sustainability and online sales make Romania a promising market for Moldovan apples.

Peru

Peru Implements Import Requirements for Fresh Apples from Brazil

Peru has established formal import requirements for fresh apples from Brazil through Directorial Resolution No. D000039-2024-MIDAGRI-SENASA-DSV, as published in the Official Gazette El Peruano. According to the resolution, Brazilian apples must be packaged on pallets, transported in refrigerated containers, and accompanied by a phytosanitary certificate from Brazil's National Plant Protection Organization (NPPO). This certificate ensures the apples meet Peru's export Work Plan, confirming they are free from pests like Anastrepha fraterculus (South American fruit fly) and Ceratitis capitata (Mediterranean fruit fly). Before shipment, the apples must undergo pre-shipment cold treatment to eliminate pests. This treatment must be verified by Brazil's Ministry of Agriculture and Livestock to ensure the apples meet safety standards for import.

United States

US Court Halts Portions of New H-2A Visa Rule, Easing Burdens for Apple Growers

The United States (US) District Court for the Southern District of Mississippi has temporarily blocked parts of a new Department of Labor (DOL) rule amending the H-2A visa program, a vital labor source for apple growers and the agricultural industry. The International Fresh Produce Association (IFPA) and co-plaintiffs argued that the regulation overstepped the DOL’s authority and imposed undue administrative burdens on farmers. The court’s ruling provided relief by halting labor organizations and rights provisions, which were seen as crucial for growers facing rising costs. Apple industry representatives, including US Apple, welcomed the decision, stressing the importance of the H-2A program in maintaining economic stability and competitiveness. Agricultural stakeholders are urging the DOL to revise the rule per the court’s findings.

2. Weekly Pricing

Weekly Apple Pricing Important Exporters (USD/kg)

* All pricing is wholesale * Varieties: US and Italy (Gala), Chile, South Africa, and France (Granny Smith)

Yearly Change in Apple Pricing Important Exporters (W48 2023 to W48 2024)

* All pricing is wholesale * Varieties: US and Italy (Gala), Chile, South Africa, and France (Granny Smith) * Blank spaces on the graph signify data unavailability stemming from factors like missing data, supply unavailability, or seasonality

Italy

In Italy, apple prices increased by 6.36% week-on-week (WoW) to USD 1.84/kg in W48, with a 5.14% month-on-month (MoM) increase and a 1.1% YoY increase. The price increase is due to the gradual reduction in high supply levels from the earlier harvest and a seasonal uptick in demand as markets adjust to post-harvest dynamics. The shift toward holiday-driven consumption has also supported prices, with increased interest in locally produced apples. Additionally, reduced competition from other regions, as their supply wanes, has contributed to the upward pressure on prices. These factors collectively signal a recovery from earlier market pressures.

United States

Apple prices in the US dropped by 7.52% WoW to USD 1.23/kg in W48, a 13.99% MoM decline. This is due to continued efforts to clear high stock levels from the peak harvest period and strong competition from other seasonal fruits during the holiday season, which limited demand for apples. Persistent logistical bottlenecks have also exacerbated oversupply, further driving prices downward. However, YoY prices increased by 11.82% due to last year's smaller harvest, which created a lower price baseline, and improved operational conditions this year following the court's decision to halt portions of the new H-2A visa rule, easing labor pressures and contributing to a steadier supply chain.

Chile

Chile's apple prices remained steady at USD 1.82/kg in W48, with a 5.2% MoM increase due to improved market conditions and a slight reduction in supply pressure following earlier adjustments to supply levels. This price stabilization comes after processors and exporters cleared excess inventory, allowing the market to regain balance. However, prices surged by 41.1% YoY due to the significantly lower base from the previous year, when production was limited, and demand challenges from both domestic and export markets led to suppressed pricing. The strong price growth reflects the recovery from last season's difficulties and the ongoing stability in production.

South Africa

In W48, South Africa's apple prices remained steady at USD 0.88/kg, with an 8.64% MoM increase due to continued strong local demand and a slight reduction in supply following seasonal harvest fluctuations. This ongoing demand helped maintain price stability. However, prices decreased 31.25% YoY due to the persistent oversupply of red apple varieties and ongoing export disruptions, including the suspension of shipments to Taiwan, which have hindered the market's recovery compared to the previous year.

France

Apple prices in France increased by 1.37% WoW to USD 1.37/kg in W48, with a 2.14% MoM decline and a 9.87% YoY drop. The price decline is due to a slight reduction in supply and a recovery in local demand following the seasonal oversupply that had persisted earlier in the season. However, prices remain under pressure from the large volumes still available in the market, especially after the peak harvest period in Oct-24. The YoY and MoM decline reflects the continued impact of high stock levels and ongoing competition from imported apples despite the disruptions caused by Storm Caetano and a downward revision of the 2024 harvest forecast.

3. Actionable Recommendations

Reinforce Orchard Resilience Against Weather Events

French apple growers should stabilize damaged trees by pruning broken branches, re-rooting uprooted trees, and ensuring proper soil support to prevent further losses. Replacing destroyed anti-hail nets with durable materials can offer better protection against future storms. Collaborating with agricultural associations provides access to shared resources and expert advice on recovery techniques. Additionally, leveraging technical expertise helps growers adopt innovative practices to strengthen orchard infrastructure. Investing in weather-resistant systems, such as advanced netting and reinforced tree supports, ensures long-term resilience and safeguards production levels against climate challenges.

Optimize Export Strategies for Sustained Growth

Chinese apple and pear exporters should prioritize diversifying export channels within Russia, targeting regions with the highest demand due to local shortages. Enhancing supply chain efficiency through better logistics and packaging tailored to Russian market preferences can further capitalize on the growing demand. Additionally, fostering partnerships with Russian distributors ensures stable market access and strengthens China's position as a key supplier amid fluctuating domestic production levels in Russia.

Ensure Compliance with Import Requirements

Brazilian apple exporters should ensure shipments are packaged securely on pallets and transported in refrigerated containers to maintain product quality. Each shipment must include a valid phytosanitary certificate issued by Brazil's National Plant Protection Organization and comply with Peru's pest-free certification standards. Pre-shipment cold treatment and accurate documentation must be verified to facilitate seamless trade and maintain access to Peru's market.

Sources: Tridge, Association Nationale Pommes Poires, Eastfruit, International Fresh Produce Association, MXfruit, Oreanda-News, Producereport

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