Estimates are that the Brazilian apple production will decrease slightly during 2014 because of adverse weather conditions and reduced plantings.
According to a report by the USDA, the total area planted with apples in Brazil in 2014 could be decline to 37,579 hectares, 2% less than in the previous year, because the high production costs is limiting the planting of new trees.
The report also indicated that the reduction in area was the result of the eradication of old orchards, which showed low productivity in recent years.
Some producers have expressed their dissatisfaction with the profit margins, and have shown no interest in replacing the trees they eradicated. Thus, expectations are that there will be no new investments in these areas in the short term and the area will remain the same in 2015.
Currently, Santa Catarina is still the major producing state of apples in Brazil with 48% of the total area, followed by Rio Grande do Sul, with 47%.
There were hailstorms in the main production areas at the beginning of 2014. As a result, some orchards experienced problems, the quality of the harvest of 2014 was affected and the production will be smaller than in 2013.
The harvest of the Eva variety, in the state of Paraná, started in the second half of November 2013. This variety was sold in the domestic market until mid-February, when the Gala variety is harvested. However, due to unfavourable weather conditions in 2013, the Gala harvest was delayed until March 2014 and its fruits were smaller than usual.
In turn, the Fuji variety was harvested in mid-April 2014. According to producers, the volume harvested this season is a bit smaller than last year's; however, its quality is better because there were enough cold nights and warm days in early March, when the fruit is in its maturation period, which resulted in a good colour.
Thus, although the hailstorms also hit the Fuji orchards, the amount of damage was much lower for this variety than in the Gala variety. However, trade sources indicate that the total apple production for 2014 would decrease by 4% and, depending on the fruit that is harvested between July and November 2014, could even drop by 9%.
Regarding apple consumption of apple, the USDA report points out that this varies among Brazilians depending on the region.
Consumers in southern Brazil prefer the larger apple varieties. Consumers in the central region of Brazil prefer medium apples, while those in the Northeast look for smaller sizes.
According to business contacts, this wide range of preferences within Brazil means that the entire crop could potentially be consumed locally. According to the World Apple and Pear Association, fresh apple consumption was 3 kilos per capita in 2013.
Nevertheless, the consumption of apples has decreased in 2014 because of the low quality of the fruits available for purchase that led consumers to replace apples for other fruits.
Apple imports and exports
Brazil exported 85,429 tons of apples in 2013, 18% more than in the same period of 2012; an increase that won't occur in 2014, as the adverse weather conditions interfered in the volume and quality of the fruit.
Exports are expected to decline by 9% in 2014 because the European markets, the main destination for Brazilian apple shipments, prefer top quality fruit.
Meanwhile, as consumption had increased in 2013, apple imports increased by 62% amounting to 93,964 tons in 2013.
That same year, Argentina was the main supplier of apples, with 49% of total imports, followed by Chile with 42% and France with 3%.
Thus, imports are expected to continue increasing in 2014 because of the adverse weather conditions, fall in production and reduced fruit quality.
It's worth noting that this is an opportunity for American suppliers of apple, since Brazil is expected to increase imports by nearly 4% in 2014. Imports in 2015 are also expected to increase by 1%.
Apple juice exports, which had decreased in 2013 when compared to 2012, are expected to continue declining in 2014.
Source: Fresh Fruit Portal