According to the Georgian team of EastFruit, mandarin harvesting season in Georgia is in full swing. According to the Ministry of Agriculture, from September 1 to December 12, 2021, Georgia exported 22.8 thousand tonnes of mandarins (+ 49% compared to the same period in 2020) worth $11.2 million (+ 53%).

Exports of mandarins from Georgia intensified in the second half of November. Traders associate high interest in Georgian products with the uncertainty in the market due to the statement of Rospotrebnadzor regarding the import of mandarins from Turkey.

The wholesale price of Georgian mandarins is comparable to last year’s and fluctuates between 0.50 and 1.00 GEL ($0.15-0.30/kg) depending on the caliber. Standard mandarins +50 are sold at 1 GEL ($0.30/kg). There are also high-quality Turkish mandarins on the Georgian market at 2 GEL/kg ($ 0.65). Mandarins are exported to the traditional markets of Russia (15.5 thousand tonnes exported this season), Armenia (4.2 thousand tonnes) and Ukraine (2.2 thousand tonnes).

According to traders, this year’s fears were confirmed – the harvest is large, but the share of small-caliber fruits is also big. Therefore, to form an export grade batch of 20 tonnes, 30-35 tonnes of mandarins must be purchased. There are frequent cases of mixing small fruits with standard ones in an attempt to sell small caliber at the best price, which led to the worsening reputation of Georgian mandarins. Thus, the wholesale price of Georgian mandarins in Russia is much lower than the average – 50 RUB/kg ($0.68/kg).

The concentration of production in households that do not seek to establish commercial production and see mandarins as an additional income without any investment also complicates quality control. In addition, the state makes additional payments to concentrate producers of 0.1 GEL ($0.03) per kilogram so that they can buy citrus fruits from the population at higher prices. The price of mandarins for processing is 0.20 GEL/kg ($0.065). According to Irakli Oniani, head of the coordination headquarters for the harvesting of mandarins of the Ministry of Agriculture of the Republic of Adjara, about 4 thousand tonnes of mandarins out of the expected 10 thousand tonnes have already been processed for concentrate.

The main variety produced in Georgia is the late-ripening Unshiu broadleaf, also known as Satsuma, which exporters say is characterized by a low sugar content (Brix 8) and a small caliber (less than 40) this year. In total, Georgia expects to harvest 70,000 tonnes of mandarins this year.

Сообщение Exporters are not satisfied with the quality of Georgian mandarins this season появились сначала на EastFruit.

In Moldova, the season of Golden Delicious apples started with a low price – 4-6 MDL/kg ($0.23-0.34/kg). At the beginning of October last year, the level of wholesale prices for this variety was significantly higher – 6-8 MDL/kg ($0.35-0.47/kg). Let’s figure out the reasons for this.

In an interview with EastFruit, the heads of horticultural enterprises noted several factors that put pressure on the price of apples of this variety at the beginning of the season. First and foremost, higher harvest of Golden Delicious apples in 2021 compared to last year. It is too early to talk about numbers, but judging by the farms that have completed harvesting, the increase is 20-30% or more.

Growers say that Golden Delicious apples are mostly large in size this year. However, many have defects, as a result of changes in humidity and temperature. Thus, traders accept apples not directly from the orchards, but mainly from the sorting and packaging facilities of agricultural enterprises, as they did when purchasing summer orchard apples. Prices for Golden Delicious apples of medium quality for current consumption and short-term storage are set at a level of Gala apple prices and on average 1 MDL/kg higher than the starting prices for Idared apples. The supply of mid and late season apples on the Moldovan market exceeds demand.

The second reason for the modest purchase prices for Golden Delicious apples at the beginning of the season is that they are usually for ,ong term storage, participants of the Moldovan fruit market say. As it was in the previous three years, demand and prices for Moldovan apples of this variety in Russia increase in the second half of January. Taking into account the rise in energy prices, storage costs will be high. Thus, traders tend to buy only high-quality fruits and at the lowest price.

Сообщение Higher harvest and lower starting prices for Golden Delicious apples in Moldova появились сначала на EastFruit.

In Moldova, from the end of July to the end of August 2021, average wholesale prices for apples of summer varieties did not exceed 5-6 MDL/kg ($ 0.28-0.34/kg) and on some occasions dropped to 4 MDL/kg ($ 0.22/kg). In July-August last year, the prices were significantly higher – 6-12 MDL/kg ($ 0.36-0.72/kg).

As the Federation of Agricultural Producers of the Republic of Moldova (FARM) experts say, low prices for 2021 summer apple harvest throughout almost the entire sales season is a red flag for Moldovan growers. It shows, on one hand, the very low potential of effective demand in the domestic market, and on the other, the growing competition of early Moldovan apples in the Russian market with local and imported (Central Asian, Iranian, Turkish) apples. Moreover, apples of autumn varieties are also likely to have low demand and low prices by inertia, at least in September.

The heads of horticultural enterprises and cooperatives claim to receive requests (so far few) from exporting traders for apples of early autumn varieties such as”Gala” and “Golden”, at a relatively high price – 10 MDL/kg ($ 0.56/kg). For comparison, the sales season for these varieties started at 7-8 MDL/kg ($ 0.42-0.48/kg) in September last year. However, at this price at the end of the first week of September this year, when growers will start harvesting Gala and Golden apples in some regions, traders intend to buy fruit of the highest quality, caliber 70 mm or more, in European containers.

According to representatives of farmers’ organizations, although the 2021 apple harvest in Moldova is relatively high – at least 600 thousand tons, as it was previously forecasted, – the quality of fruits in many orchards is an average one. Due to hail in summer and insufficient treatments, diseases (scab) have spread in the apple orchards.  There might be many apples of low quality on the Moldovan market at the beginning of autumn, which are unlikely to be requested by exporters.

In addition, according to the participants in the fruit and vegetable market, many horticultural farms are hoping for active sales of apples from the fields, as it was last year. However, traders are not likely to rush to buy apples this year. Therefore, the right solution for growers without a post-harvest infrastructure would be to rent refrigeration facilities and store sorted apples of the best quality.

Сообщение Low prices for Moldovan summer apples are a wake-up call for local growers – Opinion появились сначала на EastFruit.

According to the State Statistics Committee of Uzbekistan, the export volume of cherries in January-May 2021 amounted to 27.6 thousand tons worth $ 43.4 million. According to the ministry, in physical terms, the volume of exports turned out to be 4.3 thousand tons more than in the same period last year. Moreover, 65% of this volume was shipped from the Fergana Valley.

At the same time, the comparison of the prices with those of last year was not mentioned in the source, as, according to EastFruit, it would show a decrease compared to 2020. We wrote in more detail about the reasons for the low prices for cherries in Uzbekistan in this article. Accordingly, it is likely that the revenues from the export of Uzbek cherries will be lower than last year.

EastFruit experts believe that the indicated exports volume refers to May 2021. In other words, the export of cherries from Uzbekistan amounted to 27.6 thousand tons worth $ 43.4 million in May. The reason for it is clear. Cherry harvesting, even of super-early varieties in Uzbekistan begins no earlier than the second decade of April, and early varieties – in the third decade of April, provided there are no significant jumps in air temperature from February to April. Accordingly, exports begin in the end of the month, when volumes for export become available.

This year is marked by a shift to a later date of the beginning of the peak cherry harvest season in Uzbekistan by about 10 days due to abnormal warming in the winter months and subsequent frosts in early spring, which also damaged the harvest of super-early and early cherry varieties. According to the participants in the logistics services, the only requests for vehicles for the transportation of cherries from Uzbekistan to foreign markets were made in the last days, April 28-30. In addition, Eastfruit has already written that there was no export of cherries from Uzbekistan in the first ten days of May.

Among the 13 regions of Uzbekistan that produce fruit and vegetable products, the Fergana region became the absolute leader in the export of cherries, accounting for 47% of all exports in May 2021. The second place is taken by the Namangan region (17%) and the third is taken by the Tashkent region (14%). In total, these three regions accounted for 78% of all cherry exports in May. The share of the Fergana Valley – Fergana, Namangan and Andijan regions in the volume of exports in May-2021 amounted to 65%.

A video about the traditional technology of growing and manual sorting of cherries in the Fergana Valley of Uzbekistan is availbale here.

EastFruit experts note a sharp decrease in exports of cherries from Uzbekistan in the second half of June 2021, and since 20-21 June the exports have become isolated. Despite the late start of the peak cherry harvest season by about 10 days compared to last year, the hot June 2021 likely accelerated the ripening of the remaining harvest. Although the wholesale markets still offer both large-caliber (26+) and small cherries, these are most likely overripe cherries. Therefore, there are no volumes of transportable products for exports to distant foreign markets, given that Russia is the main export market for Uzbek cherries. This means that even in quantitative terms, the volume of cherries exports in June may turn out to be relatively low and an increase in their exports this season is not guaranteed even in physical terms.

The decline in demand for Uzbek cherries is associated with the activation of suppliers from Turkey, Iran and Azerbaijan in the Russian market, which surpass Uzbek exporters in product quality and have advantages in the cost of logistics.

Сообщение Uzbekistan sharply increased the exports of cherries in May 2021, but the export season ended earlier than usual появились сначала на EastFruit.

India is the most important market for all apple exporting countries. This country already imports about 300,000 tons of fresh apples annually and imports are growing rapidly. India is one of the four largest world apple importers, but few people really understand how this market works and what factors affect it.

EastFruit experts decided to fill this gap and explain the most common misconceptions and the most unexpected facts about the Indian apple market. We hope that this information will help in the more successful exports of apples to the Indian market.

Misconception #1 – Apples are expensive exotic fruits available only to wealthy Indians.

Indeed, India is sometimes called the “fruit basket of the world” thanks to the huge assortment of fruits produced in the country. Apples have been consumed in India since ancient times. It is a common and standard daily product just like mangos, bananas, grapes, guava, lychee, papayas, oranges, watermelon and sapota (zapota, or sapodilla). Therefore, apples are regularly bought by rich and poor Indians alike, albeit at different prices and different qualities, because the assortment of apples in India is very wide.

Misconception #2 – Apples do not grow in India because it is too hot.

After we learned that the apple is a traditional product for India, you can guess that it actually grows here. According to some estimates, India is even one of the five largest world apple producers and grows 2-3 times more apples than the whole of Ukraine! In India, there are northern mountainous and hilly states where there is agro-climatic zones ideal for obtaining high-quality apples. Overall, 2.1 to 2.9 million tons of apples are grown in India annually and the area of ​​apple orchards is estimated at 330,000 hectares. The main production is concentrated in the states of Jammu, Kashmir, Himachal Pradesh (HP), and Uttarakhand. Smaller amounts of apples are grown in the states of Arunachal Pradesh, Nagaland, Meghalaya, Manipur and Sikkim.

Misconception #3 – The weather is hot in India so apples are mainly sold in supermarkets and stores with refrigerators.

In fact, the situation is exactly the opposite. The bulk of apples are sold on layouts by street vendors. That is why if you sell apples to India, their hardness must be at the proper level even after delivery, otherwise it will simply not be sold in time. Also, this is what determines the preferences for apple varieties in this country.

Misconception #4 – Consumers in India prefer smaller apple sizes because the size of the fruit is easier to consume.

This may be true in some countries, but in India, the reason is quite different.  Apples, like other fruits, are traditionally sold in India by the piece and the price is set for one apple. Therefore, it is more profitable for the seller to buy small-sized apples since he can make more money from them. Why are apples in India sold by the piece? There are many reasons, but the main one is that not all sellers have scales and not all scales can be trusted. The quantity is a more objective indicator.

Misconception #5 – Consumers in India prefer a shiny apple so it is better to wax apples shipped to that country as US exporters do.

Many have seen apple sellers in India polish their waxed American fruit to shine to entice consumers. However, in recent years, waxed fruit is considered unnatural. Consumers have begun to pay attention to this and many importers now prefer unwaxed apples.

Misconception #6 – Mostly red apples are sold in India because they have a vibrant appearance like other exotic fruits. Therefore, consumers are not interested in green and yellow apple varieties.

This is untrue. Hindus prefer sweet fruits and they believe apples that are green and yellow in appearance cannot be as sweet as red ones. What about Golden Delicious apples, you ask? Yes, they can be very sweet, too. However, the Golden variety deteriorates very quickly in warm climates; becomes loose and not juicy. Therefore, it is usually not sold for that reason.

Misconception #7 – In India, consumers traditionally prefer only one apple variety – Red Delicious

In fact, this apple variety in India was very popular, but it is rapidly losing its popularity. It is being replaced from the market by the Gala variety. Consumers in India do not like the grainy flesh of the Red Delicious apple as well as its clones such as the Red Chief. The more homogeneous and juicy flesh of Gala apples is more appealing to the Indian palate.

Read also: Against the backdrop of declining apple exports from Ukraine, farmers raised prices for quality apples

Now, that we explained some top misconceptions, let’s cover the most interesting facts about the Indian apple market:

Fact #1 – Consumers in India prefer the elongated apple. Therefore, round varieties are not very popular here.

Fact #2 – It is better to deliver apples to India from Ukraine, Poland and other countries of the region after it has been in storage for 3-4 months and not immediately after harvesting. The reason is trivial: the density of the apple after storage in the CA, ULO, DCA storage and treatment with 1-MCP remains high and its juiciness does not deteriorate, but the amount of sugars continues to grow. Therefore, the apple delivered in January-April will be sweeter than these delivered in October. For Indian importers, this is an important indicator because they value their reputation with the consumer. Another reason is described below.

Fact #3 – The season of massive apple imports by India lasts from March to July. From August to December, the volume of imports remains very low due to the presence of large volumes of India’s home-grown inexpensive apples. This season may expand in India with infrastructure development for storing its own apples and increasing the technical skill level of Indian farmers.

Fact #4 – The growth in apple consumption and imports to India in recent years is due not only to an increase in income and population but for health reasons above all else. Apples are considered a healthier fruit in India than other exotic fruits.

Fact #5 – China has not supplied any apples to India since June 2017 due to the regular detection of quarantine organisms in the supply of Chinese apples. However, the situation may change because India has already agreed to carry out additional inspections of the apple safety system from China. The two countries are in the process of negotiation.

Fact #6 – The trade war between India and the United States had a negative impact on apple supplies, but the US remained the main supplier. In the first seven months of 2019, India imported only 50,000 tons of apples from the United States, while a year earlier imports for this period reached 140,000 tons. Apple suppliers from Italy benefited from this, which increased supplies more than 15 times up to 46,000 tons. Also, apple imports to India from Poland and Turkey have grown significantly.

Andriy Yarmak, an economist at the Investment Centre of the Food and Agriculture Organization of the United Nations (FAO), believes that India can become a good market for apples from Ukraine. “The preference of Indian consumers for a juicy, hard, well-coloured and small-sized apple as well as a consolidated and well-structured apple import market in this country, represent an excellent opportunity to diversify the supply of these fruits from Ukraine. Larger apple sizes can be shipped to the EU and the Middle East, while smaller ones to India and, for example, Bangladesh. The prices for an apple that importers from India are willing to pay are very attractive for Ukrainian producers and exporters. Even when their trade disputes with the United States are resolved and the possibility of supplying apples from China to India opens up, Ukraine will have its own niche in this market because Ukrainian apples will always be preferable here in terms of taste, colour, hardness and juiciness compared to an apple from Poland,” says Andriy Yarmak.

However, Ukraine has not yet resolved access issues to the Indian apple market: “Unfortunately, our competent authorities have not yet been able to receive a response from the relevant authorities in India, despite the fact that Ukraine has long fulfilled and even exceeded the volume of trial apple supplies to this country. According to our information, the competent authorities of India did not have any complaints about the safety of Ukrainian apples, but they are in no hurry to issue a permanent permit for the imports of Ukrainian apples,” says the FAO expert.

According to Mr Yarmak’s forecasts, Ukraine will be able to supply up to 20,000 tons of apples to India annually if its production continues to grow.

Сообщение Unexpected facts and typical misconceptions about the Indian apple market from EastFruit появились сначала на EastFruit.