1. Weekly News

India

India Maintains 50% Customs Duty on Apple Imports to Protect Domestic Growers

To safeguard domestic producers, India continues to enforce a 50% customs duty on apple imports, the maximum allowed under World Trade Organization (WTO) rules. The Minister of State for Finance clarified this in Parliament, addressing concerns from Kashmir’s apple growers following the removal of a 70% duty on United States (US) apples after WTO dispute resolutions. Apple import values have fluctuated, falling from USD 491 million in 2019/20 to USD 55 million in 2022/23 before rebounding to USD 240 million in 2023/24, with the first half of 2024 already reaching USD 243 million.

Russia

Russia's NCFD Apple Production Replaces Polish Imports

Apple production in Russia's North Caucasus Federal District (NCFD) has replaced imports from Poland, solidifying the region's agricultural significance. The Deputy Prime Minister highlighted the NCFD's role as a key producer of apples, nuts, sheep, and grapes, attributing its success to favorable geography. This development underscores the district's growing contribution to Russia's agricultural industry and its importance in supporting domestic food security.

Senegal

Imported Fruits Dominate Dakar Market Amid Infrastructure Challenges

Dakar market in Senegal offers a variety of imported fruits, including South African apples, Moroccan citrus, and bananas from the Ivory Coast. European produce, particularly apples from France and Italy, is also prominent, often re-exported through Spain via a new shipping route from Port-Vendres to Dakar. While a modern wholesale market is available, many traders still prefer traditional markets due to persistent infrastructure and hygiene challenges, reflecting the need for further regional improvements.

Ukraine

Ukrainian Apple Export Prices Surge in the 2024/25 Season

Due to reduced production and growing global demand, Ukrainian apple export prices have risen sharply in the 2024/25 season. Prices increased by 40 to 60% for exports to the United Arab Emirates (UAE), while Saudi Arabia and Kuwait saw 30 to 40% hikes. Sweden, a primary European Union (EU) buyer, paid 25% more than last year. The surge is due to a lower apple harvest in Ukraine and the region, coupled with record-high apple concentrate prices, limiting the supply of low-quality apples for fresh markets. Strong domestic demand and high local prices have shifted growers' focus away from exports, with expectations for even higher prices in spring.

United Kingdom

Rising Costs Push UK Apple and Pear Prices Higher in 2025

British apple and pear growers will raise prices in 2025 as production costs surge, driven by government policies like increases in the national living wage and national insurance. An Andersons Farm Consulting for British Apples & Pears Limited report projects a 7-pence rise in production costs from USD 1.69 to 1.77 per kilogram (GBP 1.33 to 1.40/kg). With labor costs making up half of total expenses, growers must pass these increases to retailers, ultimately affecting consumers. This shift risks worsening food price inflation, dampening demand, and further straining the economy.

United States

US Apple Storage Declined by 3% YoY in Dec-24

As of December 1, 2024, US apple storage stood at 168 million bushels, a 3% year-on-year (YoY) drop from 173 million bushels on Dec-23 but 10% above the five-year average. Fresh apple holdings totaled 122 million bushels, down 2% YoY, while processing apple inventories fell 4% to 46 million bushels. The report covers over 95% of the national apple storage capacity.

2. Weekly Pricing

Weekly Apple Pricing Important Exporters (USD/kg)

Yearly Change in Apple Pricing Important Exporters (W50 2023 to W50 2024)

Italy

Apple prices in Italy dropped slightly by 0.56% week-on-week (WoW) to USD 1.76/kg in W50, with a 4.86% YoY drop due to the higher availability of apples in the market following the peak harvest period, which contributed to increased supply and downward pressure on prices. However, month-on-month (MoM) prices slightly increased by 1.73% due to the seasonal demand during the holiday period, which drove consumption of locally sourced apples, particularly premium varieties, and reduced competition from imports.

United States

In the US, apple prices dropped by 3.97% WoW to USD 1.21/kg in W50, reflecting a 9.02% MoM decline. The price drop is due to slightly lower storage levels in Dec-24 than the previous year, prompting increased inventory turnover to maintain market flow and steady supply from ongoing harvests. Additionally, reduced demand for processing apples in some regions further pressured prices down. However, YoY prices increased by 5.22% due to higher demand for fresh apples and tighter supply conditions earlier in the season, particularly for premium varieties, supported by strong domestic consumption trends and limited availability in international markets.

Chile

Chile's apple wholesale prices increased by 3.08% WoW to USD 2.01/kg in W50, with a 10.44% MoM increase due to supply levels stabilizing and the market recovering from earlier disruptions, which had previously caused price fluctuations. The inventory pressure reduction, particularly from processors and exporters, has contributed to the upward price movement. However, there is a 39.64% YoY drop due to the high base prices from the previous year, which were driven by supply shortages and demand challenges, making the current prices more reflective of typical market conditions rather than the exceptional circumstances of the prior season.

South Africa

Apple prices in South Africa increased slightly by 2.25% WoW to USD 0.91/kg in W50, with a 3.41% MoM increase due to the successful early harvest of the Afri-range variety in the Waterberg region, which ensured a steady market supply and logistical efficiency, contributing to price stability despite potential downward pressure, which provided a logistical advantage and supported a steady market supply. The proximity to Botswana also contributed to more cost-effective distribution across Africa. However, there is a 28.91% YoY decrease due to last year's higher base prices, driven by a smaller harvest and limited supply in certain regions, alongside logistical challenges and adverse weather conditions impacting fruit maturity.

France

France's apple prices dropped by 4.79% WoW to USD 1.39/kg in W50. This was accompanied by a 12.03% YoY decrease due to the ongoing impact of high stock levels this season. The decrease was also compounded by competition from imported apples and the lingering effects of Storm Caetano, which resulted in an oversupply earlier in the year. However, prices increased by 2.21% MoM due to a slight recovery in demand as the seasonal oversupply from the earlier harvest period began to ease, and consumers prepared for the holiday season, boosting market consumption.

3. Actionable Recommendations

Monitor Apple Storage Levels and Optimize Processing Inventories

Apple storage facility managers in the US should enhance inventory tracking to better process apple supplies with demand, ensuring minimal wastage and efficient use of available stock. Fresh apple suppliers should streamline distribution to meet market needs, leveraging the 10% surplus above the five-year average to stabilize supply and maintain competitive pricing. Collaborating with industry stakeholders to forecast seasonal demand will help mitigate the impact of lower YoY storage levels.

Focus on High-Value Export Markets for Maximum Profitability

Ukrainian apple exporters should prioritize premium markets like the UAE, Saudi Arabia, and Sweden by tailoring supply agreements to meet specific quality standards and packaging preferences for these regions. Exporters can enhance their competitiveness by emphasizing apples' freshness, size, and sweetness in marketing efforts, aligning with consumer preferences in these markets. Building long-term relationships with distributors in high-value regions and optimizing logistics to ensure timely deliveries will help strengthen their presence and capture the benefits of higher price points.

Focus on Efficient Logistics to Maintain Steady Supply

South African apple growers should enhance their logistical networks by optimizing distribution routes and leveraging proximity to key markets like Botswana. Strengthening partnerships with local distributors can improve the cost-effectiveness of transportation while refining harvest timing ensures a steady market supply. This approach will help maintain competitive pricing and manage fluctuations in apple supply, ensuring consistent product availability across Africa.

Sources: Tridge, Abc, Agrotimes, British Apples and Pears, Eastfruit, Kashmir Observer, Kvedomosti, Ontario Apple Growers, Semig, TASS, US Apple Association