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Tight supplies expected

China: Apple production falls sharply

According to statistics, in 2016, the national apple production was 43.88 million tons, of which Shaanxi apple production was the largest, at 11.017 million tons; followed by Shandong, which was 978.12 million tons. In 2017, Shaanxi Province's apple production was 1,135,900 tons, an increase of 4.8% over the previous year.

Apples have maintained a very stable price in 2017 and 2018, mainly thanks to the 2017 harvest season. Apple farmers were reluctant to sell so there was not much supply. There were small increase before the Spring Festival and the price remained stable afterwards. The frost disaster in April this year meant there was a reluctance to sell and the whole process slowed down. In July, because of the high inventory, the selling mentality strengthened, so the price has remained stable.

During the Spring Festival of 2018, due to the explosive growth of sugar orange production in Guangxi and Guangdong, the price of sugar oranges has dropped to a low point in recent years, which greatly affected the market demand of apples. The yield of green dates in Taiwan also increased. The price of which is extremely low, and this is an important factor in the current decline in apple consumption.

In 2018, the production of peaches and cherries decreased, and the yield of lychees and pineapples was high. The price of apples was at a high level comparing to other fruits, which led to poor demand. Due to a gap in supply and demand caused by the new season's production cuts, apple prices continued to rise. In conclusion, if the production of other autumn fruits such as citrus, grapes and pears does not rise significantly, it will have a certain substitution effect on apple consumption.

Source: Yidejingyinghui



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