Xixia County in Yantai, Shandong, is located at 37 degrees north latitude. The area is mountainous and has an apple plantation history of more than 100 years. It is known as the capital of apples. In recent years, many apple farmers have been unable to make a living as domestic apple production increased and the apple price dropped. Some have cut down their apple trees, which reduced the production volume in this area. The production volume dropped even further this year as a result of extreme weather conditions, which caused the price to greatly increase in comparison with previous years.
The main reason for the reduced supply volume is hot weather in the summer, and hail in autumn. The overall apple production volume in Shandong decreased by 20-25%. The apple price greatly increased, so buyers are cautious when they purchase apples to stock their warehouses.
People in the industry state that the price of apple contracts will remain high this year, but the price increase will not continue without limit. After all, apples can easily be replaced with other fruits. If the price becomes too high, then the consumption volume will drop. As for the short term market conditions, if the late-season red Fuji apple harvest in October turns out to yield a small supply volume, then there is a real possibility that buyers will rush the orchards not to miss out. This will further encourage a price increase for apple contracts.
Source: Fruit Service Center
