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China: Gala apples - 2017 review

In 2017, too many Gala apples were produced and their prices were low. In fact, it was recognized as the lowest prices for that season ever. Product quality was poor, too. In general, July is a month of ripening, but in July of 2017 the weather was unexpectedly hot (38-42), there was almost no difference between night and day temperature. This caused apples to develop diseases and sunburns.

This year's Gala apples faced a few serious competitors on the market, such as watermelons and cheap apples from the last year. Added to that was the extremely hot weather and a delayed harvest. All those factors created an unfortunate situation when Gala apples from Shanxi and Shaanxi provinces appeared on the market at the same time. Supply exceeded demand, warehouses were full of apples and the prices started to decrease.

In the middle of the year prices of Gala apples started to decrease all over the market. Buyers started to lose business and took a wait-and-see attitude towards the situation. At the same time, it's not buyers who are the main sales channel for apple farmers, but local bosses of cold storage companies and warehouse owners. Small buyers make up only a small percentage of a farmer's income. When they saw that the prices were very low (only 6-7 mao), they started their cold storage operation, which ended up with stable low prices for mid-season Gala apples.

Gala apples sales have entered their last phase. In the last week of August apple production suffered from heavy rains. Apples began to turn yellow and crack - a lot of them turned half-green half-red and couldn't be sold. Only red Royal Gala apples went to market, mostly to Henan province. Small sellers are selling them at a low cost. Unfortunately, rural markets are all Gala apple farmers can hope for, because the high-end market merchants withdrew.

Source: TFresh

Publication date: 9/6/2017


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