This week, we write about the following markets: Belgium, the Netherlands, Italy, Spain, France, Scandinavia, Poland, Russia, Israel, Morocco, South Africa, Bangladesh, China, Australia, New Zealand, the US, Brazil, Argentina, Chile and Mexico.
Crisis in Belgian market
Belgian traders were optimistic at the start of the season, but ended up with a downer. In the beginning, the price of apples for processing was still at a reasonable level, but now prices for both segments are low. Polish apples are the main competitor of the Belgian top fruit.
The poor market conditions have taken a toll on the growers, some of whom have thrown in the towel, but most remain resilient.
The export market has been disappointing. India, for instance, purchased a much smaller volume. While at this time last year there were still a lot of exports, the number of orders this season has been considerably lower. Exports to Eastern Europe are almost non-existent, as that market is dominated by Polish apples.
Rain during harvest affected Dutch apples
Because of the rains during the harvest, the Netherlands, Belgium and Germany have been suffering more quality issues. This puts pressure on the bottom of the market. The situation is not the same for each apple. The Elstar, for instance, is doing well and faces few problems. It is even recording rising prices due to the growing demand for it in Germany. At this time, the small sizes cost 45 cents and the large ones reach 70 cents. For the Jonagold, prices show a different picture: size 70 costs 40 cents, while other sizes range between 25 and 30 cents.
Italian season on schedule
The situation of the apple market in Italy is not bad. A large association reported that on 1 March there were still 897,466 tonnes of apples in stock, which is one percent less than last year. The sale of the Gala has been very good, with 271,586 tonnes already marketed. The variety reached peak sales in February, with 24,353 tonnes. That same month, Red Delicious sales reached a record 33,433 tonnes. On 1 March, there were still 481,664 tonnes of Golden Delicious in storage. For other varieties, sales remain on schedule.
In Trento, sales are also on track. The Italian market is demanding the expected volume of apples and Eastern Europe and Spain have been good markets in the latest period. The industry hopes for this situation to continue in the coming weeks.
The apples from Piedmont are as good as sold out. The season for the Gala, Granny Smith and Red Delicious is over, while the Golden and Fuji are in the final stages.
Spain importing more apples
Stocks in Spain are lower than last year. Over the last months of 2015, there was an increase in apple consumption. Spanish apples account for about 52 percent of the shelf space, the rest is filled with imported apples.
Last year, Spanish exports amounted to 121,657 tonnes worth 89 million Euro. This is respectively 7.07 percent and 12.47 percent more than in the previous year. Imports amounted to 203,293 tonnes (+0.6%) worth 15 million Euro (-1.87%). In January, imports reached 15,893 tonnes (+16.89%), with a total value amounting to 12 million Euro (+26%). Barcelona and Madrid are the main importing regions. Italy and France, with 80 percent of the total, have the largest share of the import market. In August, most of the fruit was imported from Chile, which then had a market share of 35 percent.
French market saturated with Gala
The French market has an oversupply of Gala apples and it is still unclear how these volumes will be marketed. Popular varieties like the Pink Lady are expected to be sold quickly, but the market for the Gala is slow. Algeria is a major consumer of French apples, but that market has problems, so it is still uncertain how much they will be able to purchase. The African market is showing positive signs, but although demand there is good, customs formalities are a hurdle.
Scandinavia switching to overseas production
The supply of apples from France and Italy is slowing down in the Nordic market, which will soon switch to imports from the southern hemisphere. Although the bulk of imported apples will come from Chile and Brazil and it is still too early to predict how the season will develop, a trader explains that the volume of South African imports will be smaller. In any case, the drought in South Africa won't entail a disadvantage in the Scandinavian market, which has a preference for the smaller sizes (120-130). Price-wise, there is little change compared to last year; prices are high. The Danish market prefers the Pink Lady and the Gala, and there are locally grown apples available. Danish consumers have clear priorities when doing the grocery shopping: first, organic; second, Danish or European, and then from overseas sources.
15% more apples in storage in Poland
The volume of apples in storage in Poland is 15 percent greater than last year and the market is quiet. On the domestic market, apples are doing well, since imported apples are pricey. In the field of exports, the country has recently been fully focused on finding new markets to compensate for the loss of the Russian market. Some of these include Vietnam, Singapore, Hong Kong, India, Malaysia and Egypt, with the latter considered particularly interesting for Polish apples.
Russia: smuggling continues
Despite the closed borders, some volumes of fruit and vegetables continue making it across the border. Every week, several tonnes, especially apples from Poland, are intercepted and destroyed. Smuggling is beneficial for both the Russian and the Polish market. "They have to buy, we have to sell," says a Polish trader.
Israel prefers the Anna
Israeli growers tend to focus on the domestic market. The largest part of the harvest is intended for fresh consumption, and a small part goes to the processing sector. The market consumes a volume of over 100,000 tonnes of apples per year worth a total of 700 million NIS (163 million Euro). In addition to the domestic production, about 10,000 tonnes of apples are imported, mostly from the United States and Europe.
The demand for apples peaks in September, when it is about 50 percent higher than in other months. The reason for this is the traditions surrounding the Israeli New Year, the Rosh Hashanah. This peak in demand coincides with the peak in the harvest, which allows prices to stay at a reasonable level. At supermarkets, prices increase from around 1.80 Euro per kilo to 2.50 Euro per kilo.
The locally bred Anna apple is especially popular. Other successful varieties include the Golden, Starking and Granny Smith. Besides the Anna, there are few varieties able to withstand the country's warm climate.
Morocco: sweeter is better
The season is coming to an end and the next campaign will kick off in August and September. Apples are in the top three of the most popular fruits in Morocco, along with citrus and bananas. Popular varieties include the Gala, Golden and Red. Moroccans love sweet apples, so varieties like the Granny Smith perform poorly in this market. Exports are mainly intended for the Middle East and Africa, where the apples fill the gap left by the South African season.
South Africa good season, despite drought
Despite the weather conditions recorded in the country, it has been a good season. There were some concerns about the size and colour, but these factors have had no impact on the market, according to a trader. The harvest started a little earlier this year. Europe and the Middle East are the main export markets. The varieties that still need to be harvested are the Cripps' Pink, Pink Lady, Cripps' Red and Fuji. This year, the Royal Gala and African Carmine have also been shipped to China. The African market is more challenging this year. The low price of oil has taken a toll on the top fruit market. Exports to Angola alone on week 13 were about 70 percent lower than in the same week a year earlier. In Europe, the season is being extended with better preservation techniques, leaving less room for South African apples.
Bangladesh: apples lose to mangoes
The Fuji, Gala and Golden are the most popular varieties in Bangladesh. Apples are imported from countries like China, South Africa and Brazil. Prices this year are satisfactory. Occasionally, supply and demand are not in balance, especially when mangoes enter the market, as this leads to a lower demand for other fresh fruits. An importer believes that European apples have potential to gain a good position in this market.
China opens borders for all apples from the US
China has plenty of apples in storage, which is resulting in low prices and speculation. Since the beginning of the harvest in the autumn, prices have dropped sharply. The new harvest arrived to a flooded market. In the 2015/2016 campaign, the harvest volume has increased by five percent and is expected to reach 43 million tonnes. Thanks to investments in storage facilities, apples remain available for longer.
The low prices have increased the demand from South East Asia, thereby boosting exports. Early varieties such as the Gala and Red Star have been doing well in countries like Bangladesh and Thailand. India is also a growth market, especially for medium-sized Fujis. Exports to Indonesia have fallen. The Indonesian government is investing more in self-sufficiency, and as a result, China has lost an important export market.
Imports come mainly from Chile, New Zealand and the United States. A total of 100,000 tonnes of apples are expected to be imported this year, which is almost twice as much as in 2015. The restrictions on the import of all apple varieties from the US have been lifted. In return, Chinese apples have been given access to the US market.
Club varieties get a foothold in Australia
In recent years, club varieties such as the Kanzi and Jazz have been gaining ground in the Australian market. There is also a new variety: the Kalei. The current season is developing well, both in terms of volume and demand. The harvest is normal this year and growers are being paid good prices. Each year, some 220,000 tonnes of apples are grown, with the Pink Lady, Granny Smith and Royal Gala as the main varieties.
Exports are doing well, although this is still a small market, with a share of about 2 percent. The main reason for this is the high rate of the dollar. In the field of exports, traders see many opportunities in the Asian market, especially Thailand, but there are also growth prospects in the Middle East and India. China's borders are still closed for the Australian top fruit.
New Zealand focuses on Asia
According to producers, the growing conditions have been good, resulting in a satisfactory harvest and a good quality production. In Hawke's Bay, the warm autumn days and cool nights have had an impact on the colour of the apples. The harvest of the Royal Gala has been completed and the next ones expected are the Braeburn, Fuji and Granny Smith. The main markets are in Asia and North America. Europe is not as interesting for the growers because of the exchange rate. In the European market, the revenue is sometimes half of that achieved in Asia or the US.
Fewer imports from the US
The US market is still importing little; most apples on the market come from domestic producers. Especially on the West Coast, local apples dominate the market. On the East Coast, there are three times more imported apples available than last year. The main reason for this is that last year there was an exceptional supply of domestic apples at low prices that gave no chance to imported apples. When retailers will be switching to imports is still not entirely clear, as it will partly depend on the quality of the domestic fruit in storage.
Brazil wants to export again
The Fuji and Gala have a market share of about 90 percent in this country. The early varieties are harvested in mid-December, followed by the Gala in February and the Fuji in mid-March. The Brazilian market has a gap between the old and the new season, making early varieties more attractive, as these varieties manage to fill that gap. The bulk of the 1.2 million tonnes of apples produced goes to the domestic market, with only 10 percent being shipped overseas. This has to do with the exchange rate. About five years ago, export volumes were greater, and in the coming years the industry wants to export more, as the exchange rate is currently more favourable.
Argentina expects more exports
The Argentinian industry expects to export more apples in the near future thanks to the new government. At this time, 35 percent of the harvest is exported. The main markets are Europe, Brazil and Russia. The production this year has been 30 percent smaller as a result of El Niño.
Chile: season running according to plan
The harvest kicked off in February and previous estimates seem to be correct, although the quality is slightly lower. Chilean traders expect a growth of about 10 percent. The main export markets are the US, Europe and Asia. Each year, the country exports 50 million boxes.
Mexico protects growers with import duty
A few months ago, the Mexican government introduced an import tax on US apples. This allowed the price of Mexican apples to increase, which was good for the growers. The government will soon have to make a new decision regarding the levy.
A large apple growing region is Chihuahua, where there are 3,000 producers belonging to over 20 associations on about 30,000 hectares of land. The region has periods of heavy rain and hail and some of the plantations are thus protected from it with nets, but not every grower can afford to make the investment. Every year, some 20 million boxes are packed. Thanks to the good storage facilities, apples are available all year round.
In the San Joaquin region, the government is doubling its apple production. A total of about 400 tonnes of apples are grown every year, with some 80 local families involved. The local government is trying to promote apple growing in different ways in order to attract more people to this crop.
