China: Price of red Fuji apples expected to fall slightly later this season

The overall sales conditions of red Fuji apples are relatively good this year. The purchase price is also higher than in previous years. In some areas the price greatly increased in comparison with last year. First- and second grade 80# red Fuji apples in Yantai cost around 4 yuan [0.58 USD] per 0.5 kg, which is an increase of 7.14% in comparison with the same period last year. First- and second grade 80# Fuji apples in Xixia County cost around 4.28 yuan [0.62 USD] per 0.5 kg in October, which is an increase of 16.26% in comparison with the same period last year.

The main reason for the price increase is the relatively small volume of top-quality apples on the market. Red Fuji apples encountered the worst frost in 30 years, and production areas in Shandong, Shaanxi, and Gansu also suffered from hailstorms. These poor weather conditions caused the product quality of red Fuji apples to decrease. The portion of top-quality apples among the red Fuji production volume in Yantai, Shandong, reached 35%-50% this year. This is more than 20% lower than in previous years.

In addition, many apple farmers have begun to remove old apple orchards because the market conditions of red Fuji apples have not been great in the last two years. This further decreased the red Fuji apple production volume in Shandong this year. High-end fruit stores, and import/export businesses have steady demand for red Fuji apples, which puts pressure on the volume of top-quality apples on the market. The price increased as a consequence of fierce competition.

The overall production volume decreased this year and the price increased. The price of red Fuji apples is not likely to decrease by much later this season, as supply remains limited. The price may even increase during the peak season early next year.

Source: Fruit Service Center


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