It's a very challenging season for Turkish apple exporters, as, next to the lower production, prices have increased, stopping the Turkish apples from having any competitive edge, says Okan Imancer, co-founder and export manager for Turkish apple exporter The Fresh Apple: "This season, Türkiye experienced a significant drop in apple production due to severe spring frost. High-altitude regions entered the season with notably low yields. Isparta, one of the country's major growing areas, performed better than most regions overall; however, certain locations suffered from insufficient irrigation, resulting in poor sizing and regional yield losses. This situation pushed orchard-gate prices to record levels and substantially increased raw-material costs for all stakeholders in the sector."
© The Fresh Apple Dış Tic. Ltd. Şti.
According to Imancer, Turkish apple exports overall have taken a big hit due to the lower availability. "Due to the significant crop loss, we expect a noticeable decline in export volumes this season. The available fruit is largely needed to meet domestic demand. Nevertheless, to maintain our brand presence and long-standing partnerships, we plan to make limited shipments without focusing on profit. Domestic consumption has not yet accelerated, because cold weather arrived late, so both domestic and export volumes remain low at the moment."
As a result of the lower production, demand for apples in the domestic market has also skyrocketed, leading to high prices. Imancer emphasizes this also affects the Turkish position on the export market: "Orchard-gate prices have reached historic highs this season, due to the crop shortage. As a result, Turkish apples have become more expensive than those of competing origins in both domestic and international markets. Poland, Italy, and the United States remain more competitive in terms of pricing, while Iran, despite being in a different quality segment, has become more visible in the Indian market, thanks to its lower prices. The only positive development for us this season is the decline in freight rates and the availability of faster routes to India, with transit times around 20 days."
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Recently, a Turkish apple grower stated that the government has put an export ban on the apples. Imancer feels this was poorly explained, as there are just some extra hurdles for Turkish apple exporters to take, but exports are still going forward. "There is currently no export ban on apples. However, the Ministry of Trade has added apples to the list of 'products subject to export registration.' This means that while exports are allowed year-round, they require prior approval from the Ministry. The aim here is to safeguard domestic supply and maintain price stability in a season marked by limited availability. The same mechanism also applies to lemons."
Imancer states it would help if there were more demand for the available apples, despite their lower grade or smaller sizes: "Looking ahead, the most positive scenario for the sector would be if buyers, especially in India, show interest not only in premium-grade and large/medium sizes, but also in small sizes and second-grade apples. This has not occurred yet; however, if such demand emerges, it would allow the entire crop to be marketed more effectively and create a more sustainable commercial balance for all stakeholders."
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"We do not expect a strong export performance for the rest of the season due to high raw-material costs. Exports will likely continue mainly to India in limited volumes. The development of demand for small-sized and second-grade apples will be key to maintaining a sustainable export flow. In the domestic market, major supermarket chains are expected to play a decisive role. As colder weather increases consumption, the domestic market may outperform exports during the remainder of the season," Imancer concludes.
For more information:
Okan Imancer
The Fresh Apple Dış Tic. Ltd. Şti.
Sweet Tarım
Tel/WhatsApp: +90 544 595 0391
[email protected]
[email protected]
www.thefreshapple.com
