The Russian AJC (apple juice concentrate) market situation is rather difficult for domestic manufacturers. Abundant supply of domestic AJC and lack of sales channels are the main problems faced by them. In addition, AJC imports (mainly from China, Ukraine, Uzbekistan and Iran) are rather high.
At the same time, processors rarely revise their prices. The price decrease is registered in isolated cases and does not improve the situation.
For the present, prices vary between at 1.10-1.20 euro/kg.
The Russian Federation keeps on reducing apple imports, according to the official statistics.
In particular, imports in December 2013 stood at 117,000 tons, a decrease of 6% year-on-year.
Russia’s cumulative imports in the first 6 months of the season 2013/14 totalled 466,000 tons, a decrease of 11% compared with the same period of the previous season, when imports had reached record high 524,000 tons.
Thanks to an increase of 13% in exports, Moldova was the largest supplier of apples to the Russian Federation in the first half of the current season. Poland, Serbia and China also were the key exporters.
Poland has significantly reduced apple exports to the Russian Federation, according to the official statistics.
In particular, Russian importers purchased just 37,000 tons of Polish apples in November 2013, a decrease of 38% compared with the same month of the previous year.
Russia’s cumulative imports of apples from Poland in the first 5 months of the current season totaled 91,000 tons, a decrease of 29% compared with the same period of the season 2012/13.
Poland is a stable leader in apple exports to the Russian Federation with the share of 55% in Russia’s total imports in the previous season.
Despite a decrease in Russia’s total apple imports in the current season, Moldova managed to improve its position in the Russian market.
Moldova’s apple exports to Russia in November 2013 amounted to 35,000 tons, an increase of 13% month-on-month and year-on-year.
Russia’s cumulative imports of Moldovan apples in the first 5 months of the current season reached 113,000 tons, an increase of 13% compared with July-November 2012.
Moldova is ranked second in apple exports to Russia in the previous season and was behind only Poland.
Russia has reduced apple imports in the current season, according to the official statistics.
Imports in November amounted just to 117,000 tons, a decrease of 8% compared with the same month of the previous season.
Russia’s cumulative imports of apples in July-November 2013 totaled 350,000 tons, a decrease of 12% year-on-year.
In the season 2012/13 the Russian Federation imported 1.34 mln tons of apples with Poland, Moldova, China, Azerbaijan and Serbia being the largest exporters.
Chinese agricultural officials are close to allowing Washington state’s Red and Golden Delicious apples back into China next month after a two-year ban. It is unclear if that will also open up the US import of apples from China, which produces half the world’s apples.
The ban was imposed on Washington, which supplies 80 percent of America’s apples, after a shipment to China in early 2012 was declared to be carrying “postharvest diseases.”
US agricultural officials fought the ban last year, claiming that any diseases in the 2012 shipment only affected crab apples for pollination.
According to the Northwest Horticultural Council, agricultural representatives from both countries met in Xiamen, China, earlier in November, and agreed to new inspections by Chinese officials of Golden Delicious and Red Delicious apples in Washington.
With a surplus forecast of 15 million bushels of apples in Washington over the next few years because of increased plantings, Washington growers hope to cash in on the growing Chinese market even as the potential opening of the US market will possibly have them competing with Chinese brands at home.
The Russian apple market is still characterized by rather low consumption activity. For the present, apples are purchased mainly by retail chains, and sales volumes are not high.
Under those conditions and stable imports from Poland, Serbia and other countries, Russian growers are unable to raise prices. For the present, apple prices average 0.43-0.48 euro/kg. Produce of smaller size is shipped at 0.32-0.39 euro/kg. We would remind you that last year prices of domestic apples reached 0.61 euro/kg in the Russian Federation.
Taking into account such a situation, growers keep on holding their apples in storage in the hope of an increase in prices in future.
In the face of decreasing acreage over the last several years, Washington’s apple growers have continually improved productivity. That has helped the state’s growers return another big apple crop this year, which, though it is less than last year’s record-setting crop, is the second-largest crop in state history.
“The crop estimate in August was 120 million bushels, and December’s final estimate was 113 million bushels,” said Todd Fryhover, President of the Washington State Apple Commission. But even after the downward adjustment, 113 million bushels would be the state’s second-largest crop ever, behind last year’s crop of 128 million bushels. Fryhover noted that the trend has been for acreage to go down over the last few years, so two large crops in a row has to do with the gains in productivity that growers have achieved.
“Production keeps going up because growers are doing better with what they have, and they’re more efficient,” said Fryhover. Growers have also leaned on varieties that allow them to be more productive. Fryhover noted that Gala apples have become popular because growers appreciate the relative ease with which they can grow the variety, especially since it’s well adapted to the state’s climate. Another winner has been the Honey Crisp apple, which Fryhover thinks has the potential to double in volume over the next three years. As far as prices, he noted that they have not been on par with those from last year.
“There were crop failures in Michigan and New York last year, so when we had a bumper crop last year there was little fruit coming from the east and we had very good prices despite the volume we had,” said Fryhover. “But with eastern states having record years this season, we have seen a downturn in prices.” But he added that growers with premium quality and good sizes can still do well this year, despite softer prices from increased competition.
“Even with big volumes here and in Pennsylvania and New York, there’s remarkable optimism right now,” said Fryhover. “It’s going to be an okay year; not super and not bad, but adequate.”
Temperature fluctuations throughout the year have contributed to a Washington apple crop that will likely net less fruit than was initially anticipated. While most varieties suffered from diminished output, Granny Smith apples actually increased in volume over last year’s numbers.
“We started out with a strong estimate, but due to certain weather conditions, this turned out to be a short crop,” said Howard Nager, vice president of marketing for Domex Superfresh Growers in Yakima, Washington. Estimates at the beginning of the season put this year’s crop near 120 million boxes, but Nager noted that estimates last month put volume closer to 113 million boxes, and the dip has cut across almost all varieties.
“We’ve seen decreases in just about every variety except Granny Smith, which has seen a 15 percent increase over last year,” said Nager. That also extends to organic varieties, which suffered similar dips. Nager pointed to temperature fluctuations throughout the season as the likely reason for less volume this season. Cool weather greeted the start of this year’s harvest, and alternating warm then cool weather in August and September affected this year’s fruit.
“It wasn’t one weather event, like a big storm or hail that did it,” said Nager. But he pointed to larger fruit this year as a bright spot this season, and there are opportunities for retailers to push some varieties.
“There are good promotional opportunities on larger-sized fruit, which translates to good pricing for consumers,” said Nager. “What we need to do now is move the crop in a consistent manner.”
Russia is still the largest export market for Ukrainian apples despite negative import performance, according to the State Statistics Service of Ukraine.
Russia’s imports of Ukrainian apples reached just 2,000 tons in October 2013, half the amount of imports in October 2012 and the lowest level over the past 5 years. Ukraine’s cumulative export of apples to Russia in the first 4 months of the season 2013/14 amounted to 5,200 tons, which is also half the export amount than in the same period of the previous season. The Russian Federation accounted for a 96% the share of Ukraine’s total exports.
Russia is traditionally the import leader of Ukrainian apples. The country accounted for 94% of all apple shipments from Ukraine in the season 2012/13.