Hungary nets smaller apple crop

Apple production in Hungary is off sharply this year as cold, rainy weather in May spoiled fruit setting during pollination, and humid, cool weather throughout the summer resulted in extensive fungus infestations, reports the U.S. agricultural attache for the country.

The processing industry and the Government of Hungary expect a reduced crop for 2005-06 with a drop from 680,000 metric tons (MT) to between 440,000 and 470,000 MT this year.

Apples will be smaller than the previous year, and fungus and wind damage have spoiled the appearance of the fruit. The share of graded table apples will be lower than average years. However, domestic and export demand for fresh product will be met.

Domestic consumption of fresh apples decreased from 25-30 kg/year per capita in the early 1990s to about 12 kg in 2002. Reasons include the increased competition from tropical and off-season fruit, as well as weaknesses in the Hungarian domestic fresh apple supply.

During recent years, domestic table apple consumption has increased slowly. However, imported off-season fruit is supplying part of this demand. In addition, inexpensive Polish apples may become competitive with domestic table apples given both countries recent EU accession.

Hungarian producers were not interested in grading and storing their product in past years. Depressed prices in supermarket chains were hardly above bulk crushing apple prices. Moreover, because Hungary lost its table apple market in the Former Soviet Union countries and is unable to compete in western European markets, there is no real pressure to change varieties and technology.

The imports of fresh apples decreased in 2004 and 2005. The main suppliers included Italy, Austria, and Netherlands. Slowly increasing off-season imports (from Chile, Argentina, and South Africa) are hard to track because of their small volume purchases from west European importer-distributors.

Exports increased in 2004-2005, particularly to north and neighboring EU countries. A major third country buyer for Hungarian apples is Romania.

Apple Juice

More than half of Hungary's commercial apple crop goes for further processing. The majority of it goes to juice production. Juice concentrate stocks were high during the second half of 2004 due to depressed international market prices. The stocks have dried up by now, and growing industrial apple prices are harbingers for a better season. Total juice production in 2005, however, will be lower than in 2004 due to the reduced apple crop.

Domestic fruit juice consumption in Hungary is slowly increasing, although the cool 2005 summer did not support the soft drinks sector. Per capita fruit juice consumption is about 8 liter/year. This compares to Austria at 30 liter/year and Germany at 38 liter/year.

The most popular kinds of fruit are oranges, peaches and apples. However, mixes and fruit vegetable mixes are on the rise. The competition between producers and brand names is highest among fruit juices and the fruit drinks segment.

The Hungarian Food Codex sets three categories: fruit juice (made of 100% fruit, with no additives), nectar (high percentage of fruit [peach, pears 50%; black currant 25% etc.] additives may only be citric acid or lemon juice and/or sugar), and fruit drinks (low fruit content, additional additives [colorings etc.] permitted). Hungarian consumers are not yet knowledgeable about the differences, and this is why the misuse of terms is frequent (particularly at restaurants/bars).

The main markets for Hungary's apple juice concentrate are Germany, Austria and the United States. The United States imports USD 8-14 million worth of concentrate from Hungary annually.

Source