Recently, the management of JSC “Moldovagaz” urged the population of the Republic of Moldova “to reduce the gas consumption and if possible, to switch to alternative fuel.” Obviously, this statement is a consequence of the expected reduction in gas supplies to the country: Moldova (without Transnistria) negotiated with Gazprom the supply of 54 million cubic meters of gas – around 67% of the estimated monthly demand of 80 million cubic meters. This circumstance alarmed the energy-intensive companies from the agri-food sector, in particular, apple concentrate.

According to Speranța Con, the Association of Canned Fruit and Vegetable Producers, at the moment the regional divisions of Moldovagaz have not notified the apple concentrate producers about the reduction in gas supply. Nevertheless, in the context of the events taking place on the energy market and the aforementioned statement of Moldovagaz, the managers of these companies consider such a prospect as “highly probable”.

Many of the largest concentrate producers have biofuel energy infrastructures such as wood chips and dry apple pulp. However, such equipment is capable of meeting the needs of producers by a maximum of 15-20%. At the same time, some canning plants have already tried to buy additional volumes of wood fuel from forestry enterprises but were refused, motivated by the fact that, as directed by government agencies, they supply the population with firewood as a matter of priority. Representatives of canning  consider the use of diesel fuel or fuel oil as energy resources an even more problematic option.

In the current situation, the Speranța Con management considers the prioritization (at the government level, or the Ministry of Economy and the Ministry of Agriculture) of industrial gas consumers according to the “priority level” the least painful option. Accordingly, processors of perishable agricultural raw materials should be included in the group of economic entities supplied with gas as a matter of priority and in sufficient quantities. Otherwise, a reduction in purchases of industrial apples – and according to the forecast of 600 thousand tons. Half of the harvest this season is suitable only for processing and this can lead to very serious economic and social consequences for the apple growers.

Сообщение Apple juice concentrate producers in Moldova could buy fewer apples due to natural gas shortages появились сначала на EastFruit.

According to the Customs Services of Moldova, in May, this year, slightly over 18 thousand tons of apples were exported from the country. The leaders of the organizations of growers and traders hoped that the volume of apple exports in May would exceed the indicator of the previous month (in April – about 20 thousand tons). However, despite the revival of supplies of Moldovan apples to the Russian market in the first half of May, by the end of last month, traders failed to keep a high rate of exports.

In May 2020, Moldova exported a slightly less than 25 thousand tons of apples, in May 2019 – about 21 thousand tons, in May 2018 – almost 15 thousand tons. The statistics of the last three years show that in June the export volumes of Moldovan apples are sharply reduced – to 3.2-5.2 thousand tons.

Meanwhile, according to the estimates of fruit growers’ associations, tens of thousands of tons of apples remain stored by growers and traders in Moldova. Despite the fact that by the end of the first week of June, prices for apples of almost all varieties decreased compared to their level in the last decade of May by 1-1.5 MDL – to 6.5-11 MDL / kg ($ 0.36-0, 61 / kg), the rate of exports is decreasing.

In parallel with the stagnation of sales of apples for the fresh market, there is an increase in their supplies for processing but factories currently pay no more than 1.5-2.0 MDL / kg ($ 0.08-0.11 / kg) for a processing grade apple of the last year’s harvest.

Сообщение Exports of apples from Moldova in May 2021 – another negative record появились сначала на EastFruit.

According to experts from Moldovan agricultural producers associations, as of mid-November, Moldovan production factories of concentrate accepted approximately 150,000 tons of apples from the 2020 harvest for processing. The total volume of the “technical apple” may increase to about 160,000 tons when taking into account the raw materials also coming from the refrigerators of agricultural and commercial enterprises in the spring.

According to expert estimates, last season canning factories and fruit drying/distillation enterprises processed about 290,000 tons of apples in the 2018-2019 season with 340,000 tons being the maximum figure in the outgoing five-year period.

Read also: Apple massively rises in price, especially Idared – market overview for the 48th week of 2020

All market operators associate the sharp decline in apple processing with a significant shortage of harvest. Recently, EastFruit reported a downward adjustment to the expert assessment in apple production for the Republic of Moldova in 2020 to 430,000 tons. Also, the capacity of the local market of the “technical apple” was negatively affected by the fact that farmers stored even small apples in their refrigerators and sold them to exporting traders, which in other years would normally go for industrial processing.

In such conditions, canning enterprises did not even try to actively compete with each other for raw materials, that is, to raise purchase prices for them above the level of minimal risks.

Сообщение Apple processing in Moldova to halve in 2020/21 появились сначала на EastFruit.