OVERVIEW GLOBAL APPLE MARKET

In the Dutch top fruit sector, many people will be happy when this season is over. The prospects were high, but nothing came of them. On the apple market in particular, trade with the Jonagold has been very slow. The market for Elstar apples was good and the Boskoop season has already finished. The price of the Boskoop increased a little by the end of the season, but this did not offset the poor results recorded earlier. The price of the Jonagold ranges between 25 and 55 cents, depending on the size and quality. Traders also don't expect the price of the Jonagold to go up anymore. The price of the Elstar is at a level of between 70 and 90 cents for the best sizes, while the smaller sizes oscillate from the 25 cents of size 60 to the 50 cents of size 65.

 

The Belgian market is now mostly demanding soft fruit. As a result, the top fruit market is quiet. Sales are lower than in the winter months and the prices are low. The best Jonagold (size 75) cost 65 cents per kilo. Larger sizes yield lower prices. The Jonagold is still a popular variety in Belgium. For traders, determining the remaining stocks is pure guesswork. The Ministry of Agriculture and Fisheries does no longer offer these figures. Overall, it is estimated that there is less fruit available than in the neighbouring Netherlands. Expectations for the season are difficult to make, because it's too early yet. Many growers fear a bankruptcy, as Russia is keeping its borders closed. The investment in new markets will take longer than most growers can afford.

In the field of exports, the Belgians continue taking steps forward. In recent times, there has been a large trade mission to India, featuring several large trading companies and auctions. According to some, the Indian market is even more attractive than the Canadian. According to estimates, between 500 and 1,000 containers were shipped to the subcontinent last year. Interestingly, the price did not react to this new trade flow.

 

The volume of apples in stock stands at 700 tonnes. With the new season around the corner, this is good news for the sector. Last season (2015/2016), the volume increased by 10 percent. Thanks to improved storage techniques, there are still apples available, which means that the UK is becoming capable of supplying British apples all year round. Even though in the late 90's it was advised to bring the Gala on the market after January, these apples are still being sold. There are still new plantings, but it is necessary for the growers to get enough for the apples. By ensuring a more effective cooperation in the chain, it should be possible for the growers to reduce their costs and increase their profits without the prices necessarily going up, assures a trader.

Additionally, we are working on access to new markets in the Middle and Far East. Exports of British apples are higher than last year. Also, the British retail has great prospects for the new Red Prince variety.

 

According to statistics from the Ministry of Agriculture in France, the volume of apples will be slightly reduced this year. The harvest is estimated at 1.56 million tonnes, which is about 2 percent less than last year. These estimates do not take into account any damage recorded just before the harvest. For the two largest growing regions, Provence-Alpes-Côte d'Azur and the Loire Valley, the estimates are stable. Aquitaine is recording a loss of 10 percent, while for Centre and Limousin the loss amounts to 9 percent. The flowering period was accompanied by bad weather, which will take a toll on the harvest. In Centre, the harvest was affected by frost in April. The flowering in Limousin took place 8 to 10 days later. Smaller decreases have been predicted for the Midi-Pyrenees (-4%), Rhône-Alpes (-2%) and Languedoc-Roussillon (-2%). Last season, the total production increased by 5 percent, reaching 1.6 million tonnes.

 

Spain focused on cultivation at higher altitudes 

On 31 May, there were still 33,900 tonnes of apples in storage in the region of Catalonia, which is the country's main apple producer, accounting for 60 percent of the total production. Second, with 21 percent, is Aragon. The prices recorded over the last four weeks have been slightly on the rise, but have again stabilised at around 40 to 45 cents per kilo (big boxes). While most of the apples from Catalonia are usually exported, the demand in the domestic market is currently high.

Much is planted at higher altitudes; this applies to varieties that are similar to those grown in France and Italy. These apples do well in the Spanish market. Over the next two years, this change will be evident in regions such as Soria, which have suitable conditions for this crop.

The first Gala and Golden Reinder are expected in August.

 

Since the start of the marketing season, more than 1.7 million tonnes of apples have been sold. That's 87 percent of the total availability. On 1 June, there were still 263,202 tonnes in storage, according to figures from the Assomela Marketing Committee. May was a good month for apples, with sales totalling 203,851 tonnes; 2 percent more than in the same month a year earlier and 16 percent more than in May 2014. The Red Delicious, Braeburn and Fuji are doing well, with 22,200, 14,036 and 22,790 tonnes, which are higher volumes than last year. The sale of these varieties is expected to come to an end by the end of this month.

The Italian market is yielding good results for the traders, with both 'old' and new varieties doing well. The increased demand is mainly due to investments in quality and safety standards. The Russian boycott and the economic downturn in North Africa have taken a toll on the market. Imports of apples from the southern hemisphere have therefore slowed down. These are finding their way to regions where there is less competition with Italian apples.

 

The Polish season is expected to start in late August or early September. The prospects are optimistic, with a 10 to 20 percent increase in the production compared to last year. This estimate is still early, but the weather has been favourable in recent times. The country is eagerly looking for new markets. Negotiations are underway with Vietnam, North Africa and the UAE, but nothing has been signed yet. Access to the Chinese market is also desired. Furthermore, there is still hope about Russia opening its borders. The country has struggled to find alternative destinations for the apples that were previously shipped to Russia.

 

Apples are the king of the Russian fruit and vegetable shelf. Their sales account for about 40 percent of the volume sold. Russian consumers have different requirements, depending on where they live. Residents of cities like Moscow, Kaluga, Tula and Chelyabinsk have a preference for sweet and sour varieties, like the Granny Smith, while in the regions of Tver and Yaroslavl, the most demanded are the sweet varieties.

 

The harvest is now less than a month away and Israeli growers fear a poor harvest. The impact of drought and early heat waves is reducing the yield. Prices are still at a normal level, between 1.50 and 2.50 Euro per kilo. The impact of the lower supply should be reflected in the price as stocks start running low and the lower supply is confirmed.

The bulk of the apple production, about 80 percent, concentrates on the Golan Heights, in the north east of the country. This is one of the few regions where winters are cold enough for the apple crops. Last winter was exceptionally dry, with less than 60 percent of the average rainfall. This was followed by a few heat waves in early spring. The result is a low estimate for this year. "We hope that something positive comes out of this season, but at the moment, the prospects are terrible," said one grower.

 

In a normal year, about 100,000 tonnes of apples are harvested in Israel. Additionally, another 15,000 tonnes are imported. In recent years, the harvest has reached up to 130,000 tonnes, so there was even a small volume available for export. With the current low estimates, import quotas may be adjusted to prevent a price spike. The Ministry of Agriculture is considering this step already.

Popular varieties include the Anna, Golden Delicious and Granny Smith. The Anna is a local variety that grows well with warm winters. The other varieties are more sensitive to the weather.

 

The apple season is almost over in India and the harvest has been larger than last year. According to estimates, this year's production has been between 15 and 20 percent greater. Thanks to investments in distribution, the quality has improved, making the apples more appealing to consumers. In addition to the domestic production, imported apples are also available on the market from suppliers such as Washington, China and Chile. China holds the largest share of the market. Chilean apples have been flooding the market for the past two to three weeks. There is also fruit from some European countries, including Belgium, Italy and Poland.

 

The season in Brazil has just passed its peak. The final figures are not yet available, but it looks like the harvest will be smaller than last year's. Two weeks ago, a grower who has finished with the harvest said that the production of Cripps' Pink in Vacaria and Fuji in Santa Catarina will be lower than last year. The main cause for this is the weather and El Niño. First there was frost, then torrential rains and cold in the spring.

 

As a result, there is less fruit and the calibres are smaller. A grower is expecting a reduction in the volume of about 20 percent this year, but since the harvest has only just finished, that figure is not yet certain.

 

Exports have remained stable, although a decline is expected from June onwards. On the import side, there should be a slight growth. The country imported twice as many apples from Chile. In the second half of the year, the supply of apples will grow. As a result, the supply and demand will come into better balance. Normally, there are price drops at the beginning of the season because at that time the supply is greater than the demand.

 

The supply of Gala apples in the US is still so high that apple imports have been reduced. Chilean exporters, among others, who had hoped to start on an empty market, have had to cut back their volumes. The prediction that the season in the Pacific Northwest would finish earlier was based on reports of heat, which would affect the storage quality. In addition to Chilean exporters, Argentinian and New Zealand traders are cautious.

Competition with stonefruit seems to be slowing down the marketing of apples slightly in the summer months, but apples are still doing better than pears. After a period when prices were falling, prices are now stable.

 

Earlier this year, the Mexican government proposed an anti-dumping fee on US apples. Recently, the government has announced the elimination of this measure and the repayment of wrongly withheld taxes. The Mexican government has failed to solidify the allegations of dumping. The apple industry in Mexico is suffering the impact of imports from the US and would rather see protective measures in place.

 

European demand is not as great as expected and the prices are not as good as last year. The reason is that there is sufficient stock. The demand in Europe is expected to grow in the coming weeks. In other markets, demand is also good. The Gala is especially popular.

 

Due to the international economic situation, traders have faced a lower demand. Also, due to the impact of El Niño and the violent hailstorms recorded in April, a 30 percent drop is expected in the volume of early apples. For the later varieties, the prospects are better. Demand from Europe is lagging behind and the prices are not very high.

 

The apple season is coming to an end this month and the new crop won't become available until September. The prices have been very low this year, which has increased the demand from neighbouring countries.

Imports come mainly from New Zealand, Chile and the US. It is expected that some 100,000 tonnes of apples will be imported this year. That's almost twice as much as last year. The harvest is estimated to increase by 2.1 million tonnes and reach 43 million tonnes. Last spring, the regulations for imports from the US became less strict. Chinese producers are trying to differentiate themselves with new or existing labels. One example is the growing harvest of Pink Lady in Xi'an.