The US apple sector is currently confronting a significant challenge due to an oversupply, despite experiencing a harvest of both high volume and quality. This abundance has led to difficulties in finding markets for the excess produce. Chris Gerlach, the U.S. Apple Association's director of industry analytics, highlights the gravity of the situation, stating, "We had a big year this year... According to my records, this is the largest November holdings." Despite historical precedents of large volumes, the current storage levels are unprecedented, complicating the process of offloading the surplus inventory.
Gerlach points out the core issue of identifying viable channels for the surplus, questioning past disposal methods. The constrained export avenues and fluctuating domestic demand leave producers with minimal options, potentially necessitating price reductions to boost sales.
Nonetheless, Gerlach expresses a cautious optimism regarding the potential alleviation of the surplus through the anticipated drop in tariffs in India, a relatively small but promising market for US apple exports. The impact of such tariff reductions on the surplus, however, remains speculative.
Source: rfdtv.com
