As the first apples are entering the markets worldwide, they are naturally getting a lot of attention. On 10 January, GF Futures joined hands with Zheng Shang, and held an Apple Industry Development Forum in Xianyang. During the forum, Lin Guofa, director of the Brick Consultation Institute, explained that the apple supply will exceed the demand within the next five years, and that the prices will drop.
Because of the increases in distribution and production costs, the apple demand, and an insufficient apple supply, the apple price kept increasing from 2006 until 2015. After the apples entered the market in 2015, there was an apple surplus, and the prices dropped.
In the past few years, dwarf apple trees have been put into production. Their annual production is optimized, the production management is improved, and the production area is expanded. If the weather is as usual, the apple production will increase 4% to 5% in the next five years. After an increase in the demand in the past ten years, the 2016 apple consumption increased around 30 kilograms per year per person. This is more than the world average. This increase in demand will gradually slow down. Lin Guofa believes that the Chinese apple production will continue to grow, and that there will be an apple surplus, leading to a drop in price.
Source: Futures Daily