Last year, it was not only China where apples lost a lot of money; the global apple market was in a slump.
European apple stocks are currently low, which can be considered good news as the new apple season approaches. Stocks in Italy and the UK are both low. Mexico's removal of import tariffs on US apples has US exporters rejoicing, while Mexican growers and traders are under pressure. Israel's apple season is expected to be difficult, and the Latin American apple season also has a bleak outlook.
The latest European data from 1 May 2016 shows,Europe currently has 1,385,257 tons of apple inventory, an increase of 100,000 tons over last year.Golden Delicious is one of the best-selling varieties, with inventory lower than last year. Red Delicious and Fuji inventories are also lower than last year.Poland is one of the countries with the most obvious increase in apple inventory, up 75,000 tons compared with the same period last year, mainly the Idared variety.This variety was previously exported to Russia.
Experts expect Europe's apple production next season to be 12.2 million tons, a decrease of 1.4 million tons from last year, mainly due to reduced apple production in Poland, Hungary and Italy.
Lower prices on the Chinese market
China's apple season is about to end this month, and new production will not come onto the market until after September. This year's apple prices are low, prompting increased demand from neighboring countries.
Imported apples on the Chinese market mainly come from New Zealand, Chile and the United States.It is estimated that China will import about 100,000 tons of apples this year, nearly double last year's figure. At the same time, production is expected to increase by 2.1 million tons to 43 million tons.Since last spring, China's regulations on imported US apples have no longer been so strict. Chinese producers are trying to distinguish themselves from imported products with new or existing labels.NetherlandsMany people in the Dutch tree fruit industry will breathe a sigh of relief once this season ends. Production this season was high, but market conditions were poor.As far as the apple market is concerned, trade in Jonagold apples has been very slow, the market for Elstar apples is good, and the Boskoop apple season has ended.Prices for Boskoop apples rose slightly toward the end of the apple season, but this could not offset the earlier poor market performance.
Jonagold apple prices range between 25 and 55 euro cents, depending on size and quality. Traders do not expect Jonagold prices to rise further. The largest Elstar apples are priced between 70 and 90 euro cents, while smaller ones hover between 25 euro cents (size 60) and 50 cents (size 65).
Belgian tree fruit market relatively calm
Demand on the Belgian market mainly comes from summer fruit, so the tree fruit market is relatively calm, with sales lower than in winter and prices also lower.
A kilogram of the best-quality Jonagold (size 75) costs 65 euro cents, with large apples priced lower than small ones. Jonagold remains a popular variety in Belgium.
Traders can only guess at the remaining inventory, and the Ministry of Agriculture and Fisheries cannot provide accurate data either. Overall, Belgium's inventory is estimated to be lower than the Netherlands'.Because Russia's border remains closed, many fruit growers fear bankruptcy as a result.This is because investment in new markets takes a long time, and most fruit growers cannot afford the costs during this period.
On the other hand, Belgium is working hard to develop its export industry. A large trade delegation from the country recently visited India, including some large trading companies and auction companies. According to some traders, the Indian market is even more attractive than Canada. Last year the country exported approximately 500 to 1,000 containers of apples to India.
UK able to supply apples almost year-round
The UK's apple inventory stands at 700 tons, which is good news for the apple industry as the new apple season approaches.
Apple production in the previous season (2016/2015) increased by 10%, and with improved storage technology, apples are still in stock,which means the UK can gradually supply British apples year-round.
Although Gala apples in the late 1990s were generally recommended to be marketed after January, these apples are still being sold now.The country is still planting new orchards to obtain enough apples.One trader said that by ensuring more effective cooperation throughout the production and sales chain, growers can be helped to reduce costs and increase profits without raising prices.
In addition, the UK is entering new markets in the Middle East and the Far East. UK apple exports have increased compared with last year. Furthermore, the retail prospects for the new Red Prince variety are very broad.
France expects smaller productionAccording to statistics from the French Ministry of Agriculture,France's apple production this year will decline slightly to about 1.56 million tons, about 2% lower than last year,but these estimates do not take into account possible damage in the few days before harvest begins.
Provence-Alpes-Cote d'Azur and the Loire Valley are France's two largest apple-growing regions, and production there is expected to be stable.Production in Aquitaine, another growing region, suffered a 10% loss, while apple production in the Centre and Limousin growing regions also suffered 9% damage. This was caused by adverse weather during the flowering period, and the flowering season in Limousin was delayed by 8 to 10 days.
In addition, production in the following regions also declined slightly: Midi-Pyrenees (-4%), Rhone-Alpes (-2%) and Languedoc-Roussillon (-2%). Total production last season increased by 5% to 1.6 million tons.
Spain values high-altitude cultivationCatalonia still had 33,900 tons of apple inventory on 31 May. This region is Spain's main apple-producing area,accounting for 60% of total production, followed by Aragon, which accounts for 21% of total production.
Prices have risen slightly over the past four weeks, but remain at around 40 to 45 euro cents per kilogram (large box). Although most Catalan apples are usually used for export, demand on the domestic market is currently also high.
Many apple-growing areas in Spain are located at high altitudes, and apples grown in these areas sell well on the Spanish market.The trend of growing apples in high-altitude areas will become more pronounced over the next two years in areas such as Soria, because the region has growing conditions suitable for these varieties.
The first Gala and Golden Reinders are expected to come onto the market in August.
Italy optimistic about the apple seasonAs the sales season begins,Italy has sold more than 1.7 million metric tons of apples, accounting for 87% of total production. According to data from the Assomela marketing committee, the country still had 263,202 tons in stock on 1 June.