1. Weekly News

India

Kashmir's Apple Industry Faces Challenges Due to Extreme Weather and Climate Change

Contributing 78% to India's annual apple production, Kashmir's apple industry has been severely affected by prolonged dry weather and heatwaves this year, with Shopian experiencing an 81% shortfall. A significant rainfall deficit has decreased juiciness, increased pest infestations, and caused physical damage such as apple scalds and cracking, reducing the crop's quality and shelf life. This decline has caused prices to drop significantly, with apple boxes selling for as low as USD 2.36 (INR 200), down from the usual USD 11.78 (INR 1000). The dry conditions minimized apple scab losses, but unseasonal snowfall in June further hampered yields and pollination. With apple farming employing 3.5 million farmers and contributing over 8% to the region's gross domestic product (GDP), the challenges, exacerbated by climate change, have prompted calls for government intervention, including crop insurance and restrictions on duty-free apple imports.

Sustainably-Farmed Premium French Apples Make Their Debut in Mumbai

The Interbranch Association for Fresh French Fruit and Vegetables (INTERFEL) introduced premium French apples to Mumbai, including Red Delicious, Golden Delicious, Royal Gala, Granny Smith, and the unique red-fleshed Kissabel. This initiative aims to cater to Indian consumer preferences while promoting sustainable farming practices such as precision irrigation and eco-friendly pest management. Despite challenges like extreme frosts in Eastern Europe, France's apple production is expected to remain stable at 1.4 million tons in 2024. A Mumbai culinary event showcased French apples' versatility in dishes like Chilled Apple Salad and Royal Gala Cranberry Galette to celebrate the launch. Representing over 1.3 thousand growers, INTERFEL is committed to sustainability and innovation, with plans for in-store promotions to familiarize Indian consumers with French apple varieties.

South Africa

South Africa's Waterberg Region Achieves Successful Apple Harvest Despite Climate Challenges

The 2024/25 apple harvest in South Africa is expected to succeed, particularly in the Waterberg region of Limpopo, where apples have thrived despite a July frost that damaged other crops like peaches and nectarines. Ginger Gypsy, a prominent company in South Africa's apple industry, plans to market around 400 metric tons (mt) of apples this season, primarily from the local Afri-range variety, known for its early harvest and freshness. This gives it a logistical edge over apples from regions like the Cape. The proximity to Botswana allows for cost-effective distribution across Africa, where many of South Africa's apples are exported. While the orchards produce excellent quality fruit, climate change remains a concern, especially for stone fruit, with fluctuating temperatures and rainfall affecting fruit maturity.

United States

Washington's Apple Harvest Faces Mixed Results Due to Hot Summer and Global Trade Concerns

A hot summer has impacted Washington's apple production, leading to lower yields and packout rates for early varieties like Honeycrisp and Gala, in contrast to the previous season's oversupply and low pricing. However, favorable weather later in the growing season boosted conditions for late-harvest varieties like Granny Smith, Fuji, Pink Lady, and Cosmic Crisp, which are expected to perform well. While early varieties are commanding higher prices, concerns persist that the larger yields of later varieties, comprising 60% of Washington's total apple production, could pressure pricing and market movement. Exports, particularly to India and Mexico, have helped ease some of this pressure, although future tariff changes remain a concern for the industry's global trade.

Vietnam

Price Drop Causes High Demand for Chinese Honey Apples in Vietnam

Chinese honey apples have become popular in Vietnam due to their high supply and steep price reduction. Once priced at USD 2.36 to 4.73 per kilogram (VND 60,000 to 120,000/kg), they now sell for just USD 0.39 to 1.58/kg (VND 10,000 to 40,000/kg), with wholesale box prices standing at USD 0.39/7kg (VND 10,000/7kg). Grown in China’s cold regions, such as Xinjiang, Gansu, and Shaanxi, their prolonged ripening process enhances sugar content, while low transportation costs and favorable export conditions make them affordable. Widely available in traditional markets, fruit stores, and online platforms, these apples are becoming a popular, cost-effective choice, competing with pricier varieties. As a result, Vietnam’s agricultural imports from China, including apples, rose nearly 24% to almost USD 800 million in 2023.

2. Weekly Pricing

Weekly Apple Pricing Important Exporters (USD/kg)

Yearly Change in Apple Pricing Important Exporters (W49 2023 to W49 2024)

Italy

In Italy, apple prices dropped by 3.80% week-on-week (WoW) to USD 1.77/kg in W49, with a 1.67% year-on-year (YoY) drop. The price drop is due to the continued adjustment of supply levels following the peak harvest period, leading to increased availability of apples in the market. However, there is a 2.31% month-on-month (MoM) price increase due to the shift toward holiday-driven demand, which has boosted consumption of locally produced apples. This seasonal increase in demand and reduced competition from other regions have supported a modest price uptick compared to the previous month.

United States

Apple prices in the United States (US) increased by 2.44% WoW to USD 1.26/kg in W49, reflecting a 14.55% YoY increase due to the lower yields and packout rates of early varieties like Honeycrisp and Gala, which have commanded higher prices compared to the previous season’s oversupply. However, prices decreased by 11.89% MoM due to the larger yields of later varieties, such as Granny Smith and Fuji, which are expected to increase supply and put downward pressure on pricing. Additionally, despite the positive impact of exports to markets like India and Mexico, concerns about future tariff changes and the overall balance between early and late harvests have contributed to the MoM decline.

Chile

In W49, apple prices in Chile increased by 7.14% WoW and MoM due to improved market conditions, with supply levels stabilizing and ongoing recovery from previous disruptions. The slight reduction in inventory pressure, particularly from processors and exporters, has supported the upward price movement. However, YoY prices dropped by 36.48% due to the high base prices from the previous year, when supply shortages and demand challenges impacted the market. The current price drop reflects a return to more typical supply and demand conditions compared to the exceptional circumstances of the previous year.

South Africa

South Africa's apple prices dropped by 1.14% WoW to USD 0.89/kg in W49, with a 28.99% MoM decrease due to the post-harvest market adjustment following the peak supply period, particularly from regions like the Waterberg, where the early harvest has helped increase availability. However, there is a 31.54% YoY drop due to the higher base prices from the previous year, driven by the smaller harvest and limited supply from some regions, compounded by logistical challenges and fluctuations in demand. Additionally, while the local Afri-range variety has maintained its freshness and quality, the broader market has experienced a more balanced supply, contributing to the price decline.

France

Apple prices in France increased by 6.57% WoW to USD 1.46/kg in W49, reflecting a 9.77% MoM rise due to a slight recovery in demand as the seasonal oversupply from the earlier harvest period began to ease and as consumers prepared for the holiday season. The price increase was also supported by reduced volumes available in the market. However, a 3.31% YoY drop in prices of apples is due to the continued impact of high stock levels this season, along with ongoing competition from imported apples and the earlier disruptions caused by Storm Caetano, which led to an oversupply in the market.

3. Actionable Recommendations

Strengthen Export Strategies and Optimize Pricing for Apple Varieties

Washington apple producers should strengthen their export strategies to mitigate the impact of weather-related yield fluctuations, particularly to India and Mexico, where demand is rising. The industry should work closely with export partners to ensure consistent market access despite potential tariff changes. For managing pricing volatility, producers can optimize their pricing strategies by differentiating early and late-harvest varieties, utilizing premium pricing for early varieties like Honeycrisp and Gala, while strategically managing the volume of later varieties like Granny Smith and Fuji to avoid oversupply. These actions, led by exporters and producers, can help balance domestic and international demand, stabilizing prices.

Enhance Crop Resilience and Quality Management for Kashmir's Apple Industry

To address the challenges of dry weather and heatwaves, apple farmers in Kashmir should focus on adopting more resilient farming practices, such as drought-tolerant apple varieties like M.26 and G.41, and improved irrigation techniques. Quality management practices should be prioritized, especially in mitigating issues like apple scalds and cracking. Farmers should also work with industry stakeholders to develop post-harvest solutions to extend shelf life and improve product quality. Additionally, producers can explore partnerships with agricultural researchers to implement pest control strategies and improve pollination outcomes. Local farmers and apple industry associations should lead these steps to strengthen the region's market competitiveness and reduce crop loss.

Strengthen Marketing and Distribution Strategies for Chinese Honey Apples in Vietnam

Importers and distributors should focus on enhancing their marketing and distribution strategies to capitalize on the growing popularity of Chinese honey apples in Vietnam. They can emphasize the apples' affordability and high sugar content to attract price-sensitive consumers. Additionally, expanding the presence of honey apples through online platforms and fruit stores can help reach a broader audience. Distributors should also consider offering promotional deals or bundling the apples with other products to increase consumer engagement and loyalty. Importers and retailers should lead these actions to maximize the market potential in Vietnam.

Sources: Tridge, Daily News Egypt, Freshplaza, Mxfruit, Ontario Apple Growers, NewsX, VNExpress