HomeTrendingWill prices for industrial apples in Ukraine, Moldova and Russia increase?
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Will prices for industrial apples in Ukraine, Moldova and Russia increase?

According to EastFruit analysts, despite record apple harvests in the region’s countries and the completion of harvesting of late varieties, prices for industrial apples are not decreasing now. Moreover, there is even a tendency for industrial apple prices to rise to 0.30-0.35 PLN/kg ($0.07-0.09/kg) in Poland.

What are the reasons for price stability, and can they rise in the future? Let’s figure it out.

Despite the fact that the demand for apple juice concentrate has been declining globally for many years in a row, the supply and demand have now stabilized. Therefore, if its production rises or falls sharply, prices react more sharply.

Given the high global inflation, as well as the record figures ​​the FAO Food Price Index reached, prices for apple juice concentrate have also started to rise. The growth in prices was further enhanced by the factor of a sharp increase in the cost of transportation – after all, the United States is the largest market for apple juice concentrate in the world, and China is the largest exporter. Accordingly, sales markets and producers are separated by large distances.

However, the most important factor was a larger than expected decline in the US apple harvest in 2021. According to preliminary estimates of local associations, the apple harvest in the US may turn out to be the lowest in the last 9 years, which has already affected the apple concentrate market. As less raw materials became available, the US demand for imports increased sharply.

Producers of apple concentrate in Poland were the first in our region to react by raising purchase prices for industrial apples. By the way, Poland is the second largest exporter of apple juice concentrate in the world after China, although Turkey is now quickly catching up with it.

What about the prices for industrial apples in Ukraine and Russia? According to Fruit-Inform.com project analysts, the prices for apples for processing remain stable. Moreover, it is obvious that producers of apple juice concentrate are ready to pay more for large volumes. “Large enterprises sell apples for processing in large batches at 2.5-3.0 UAH/kg ($0.10-0.11) including VAT — a very good price, given that apples on the fresh market are only slightly more expensive now. But processors manage to buy small batches of industrial apples even at 1.8 UAH/kg ($0.06-0.07). Moreover, Ukrainian processors have an abundance of offers now,” says Ievgen Kuzin, head of international projects at APK-Inform: vegetables and fruits.

According to APK-Inform: vegetables and fruits, prices for industrial apples in Russia are also stable and range from 7 to 10 RUB/kg. However, as Russia is also an importer of apple concentrate, industrial apples are always more expensive here.

Prices for industrial apples In Moldova are now stable and amount to 1.20-1.40 MDL/kg ($0.07-0.08/kg), although some enterprises agree on a higher price level.

We can say that the first prerequisites for the rise in prices for industrial apples have already appeared on the regional market. However, the apple supply is still sufficient, and it is difficult to store industrial apples for long. Thus, an increase in prices can be expected after the flow of offers for commercial apples that cannot be stored decreases and offer for apples rejected during sorting appears.

EastFruit

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