Apple market in China: high stocks, low prices, pessimistic expectations

According to EastFruit analysts, individuals in the Chinese clean apple market count on a challenging season. Despite the USDA’s forecasts of a feasible limit in the apple harvest in China, neighborhood sources communicate of a in all likelihood amplify in production.

The scenario is aggravated by way of the truth that summer season apples in China in 2021 have been bought at document low expenditures given giant shares of the 2020 apple harvest in the country’s fruit storage facilities. Accordingly, apples from storage had been bought at incredibly low prices, competing with summer season varieties.

Since Chinese farmers commenced offering Gala apples to the markets in late July and early August, the state of affairs in August solely worsened and costs remained at file lows. Farmers frequently acquired much less than $0.2 per kg for good-quality summer season apples, and customers paid no extra than $0.10 per kg for small-sized apples!

Despite low fees all through the season, China managed to extend its apple exports by using solely 2% in contrast to the 2019/29 season to 1.1 million tons. This was once the very best export extent in the closing three seasons, however it used to be appreciably decrease than the export in the 2016/17 and 2017/18 seasons. In these years, China exported 22-24% and nearly 260 thousand heaps extra apples than in the 2020/21 season.

Read also: Apple expenditures in Belarus are amongst the best possible in the place due to authorities regulation

Apple imports to China ultimate season had been additionally at a document low for many years – solely about sixty nine thousand tons. However, this did now not keep the situation. It looks that an choice to the Russian market, get entry to to which for Chinese apple exporters is nonetheless closed, has no longer been found.

This is tricky via the adverse state of affairs in the apple listen market, the place China is the biggest producer and supplier. In current years, reconstituted juices are no longer viewed a wholesome product and are dropping buyers round the world, with different drinks taking their place. Accordingly, even the sale of apples for processing into listen at an less expensive rate is now greater complicated.

Another excessive apple harvest in 2021 in China, if confirmed, should worsen the world imbalance in apple furnish and demand, which EastFruit specialists draw interest to with the #freshapplecrisis hashtag.

By the way, from the international locations of our region, Uzbekistan grew to become the greatest apple importer from China closing season, the place about 6 thousand lots of Chinese apples had been shipped.