The Chinese apple market is still saturated with stocked apples coming from Shandong and Shanxi province. Current local wholesale prices of Fuji apples, the most premium variety on the market, are low at 5 Yuan per kilogram. The low prices have boosted apple exports, but access to some major export markets is hampered and the domestic market remains slow.
The new harvest has finished, and current stocks can last until August and September. There is no reason to assume market outlook or prices will change in the short term.
Mixed opportunities apple export
The low apples prices do spur export of premium and regular apple varieties. The US remains a strong export market for Fuji apples. Growing markets in Southeast Asia, including Bangladesh, the Philippines and Sri Lanka are big buyers of cheaper, regular varieties.
However, China’s apple export to three of its major markets, Europe, Indonesia and Russia, remains hampered.
Russia, Europe and Indonesia
Import apples cannot compete with ample local supply since the trade boycott with Russia. Poland, Europe’s biggest apple producer, used to export the majority of its crop to Russia. These volumes are now, at low prices, available in Europe, and imports from outside European countries have considerably slowed down.
The Indonesian government is implementing a policy to become more self-sufficient. As a result it has stopped imports of agriculture products that are grown in Indonesia. The policy is hurting Chinese fresh fruit and vegetable exports, particularly those of citrus and apple. “In the last two months, Indonesia has not accepted any of our apple exports,” comments a trader from Dalian. Talks between the Indonesian and Chinese government are taking place, but it is early to conclude what the outcome will be.
The Russian economy is under pressure. Currently, only apple export from China to Russia are done by truck and consist of regular to cheaper varieties. As long as the Russian market does not recover, this situation will not change.
