APPLE CROP UPDATES - Q3 2024

Following two freeze events in April and May, Polish apple orchards experienced widespread fruit drop last month, a situation worsened by several recent hailstorms in some areas. As a result, current estimates for Poland’s 2024/25 apple crop have been reduced to just 2.50-3.25 Million MT*, down from earlier expectations of up to 5.00 Million MT. Last season, the industry produced 3.59 Million MT of apples and 265,000 MT of apple juice concentrate. Analysts also expect total European output to reach around 11.10 Million MT this year.

Given these figures, if the Polish crop only reaches 2.50 Million MT, the processing industry will compete for 1.31 Million MT of apples, resulting in around 125,000 MT of apple juice concentrate. If crop production reaches 3.25 Million MT, the industry could produce up to 230,000 MT of concentrate. Raw material prices have surged due to the potential production shortfall this season.

European traders report consistent supply requests with varying contract terms. Some buyers seek coverage until the end of the year, while others are only looking to cover the short term due to market uncertainty. Producers are reportedly offering only small volumes until the new crop production begins.

CHINA

In China, the government has reportedly ceased supporting apple growing, leading producers to consider alternative crops, which may decrease apple acreage. The 2024/25 crop is expected to be similar to the previous year at around 37 Million MT, which is relatively low for China.

Additionally, the industry faces financial problems; some contracted supplies could not be shipped due to logistics issues related to the Red Sea problem and low container availability. Freight rates are above USD 3,000 for a 20-foot container and continue to rise. No processing of apples from the previous season is occurring.

Analysts note that market uncertainty is causing headaches for both buyers and producers.

 

*MT = Metric Tonne = 1,000 Kilogram