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China: Early-season apple market analysis

The harvest season of Red Fuji apples began less than two months ago. The production areas in China's northwest suffered from cold weather in spring this year. Production areas in Shaanxi, Shanxi, and Gansu suffered severe damage and the apple production volumes significantly decreased. Furthermore, many production areas later suffered from hailstones and low temperatures, which further damaged the apple harvest. Then the hottest summer in 17 years followed, while autumn began with heavy rainfall. All of these developments severely damaged apple blossoms and the growing apples. Both production volume and product quality suffered. The apple production volume decrease is estimated at around 30%, which would put the apple production volume at its lowest point in 18 years.

Although the apple production volume decreased, the overall conditions are still not optimistic. In late April, most apple warehouses sold less than 60% of their stock. Even though apple production decreased by at least 20% this year, it is estimated that next year in April apple warehouses will still have 20% of stock left, which the market will not be able to absorb. Add to this the increased variety of apples that consumers can choose from and the added competition of imported fruits, and it is likely that the apple market in 2018 will continue to be one where supply exceeds demand.

Source: Agricultural Hotline
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