At least two Moldovan enterprises started to accept apples for processing in puree in 2022, right after the January holidays. Currently, industrial apples are purchased at the prices of the end of last year – 1.20-1.40 MDL/kg ($0.07-0.8/kg).

The volumes of deliveries are still small – from several tens to several hundred tonnes per day. Producers of apple juice concentrate are most likely to also be included in the purchasing of raw materials, as soon as the country warms up.

Read also: Apples exports from Moldova remain high in January

According to the Association of Producers of Canned Fruits and Vegetables Speranța Con, the purchase of apples is now limited by weather conditions and the specifics of production logistics: puree producers can accept and store apples in containers for a short time, but concentrate producers cannot. However, the resumption of processing of industrial apples in the first half of January is not typical, as it usually resumes no earlier than mid-February.

Probably, the launch of factories at the beginning of the year is also due to the fact that the country maintains a high December rate of apple exports in the first work weeks of 2022. Rejection of products is usually high when sorting and forming export batches during such periods.

Presumably, sales of low-quality apples left in storage facilities of agricultural enterprises sharply intensified in Moldova in January, taking into account the cold weather. Obviously, most of such goods are supplied for processing.

Сообщение Fruit processing plants in Moldova resumed buying industrial apples появились сначала на EastFruit.

According to the preliminary estimate of Speranța Con, the Association of Producers of Canned Fruit and Vegetables of Moldova, local factories producing apple juice concentrate and apple juices will process about 350 thousand tonnes of apples of the 2021 harvest by the end of the year. Over the past five years, the volume of industrial apple processed by these enterprises did not exceed 280-300 thousand tonnes average per season. The maximum volume of processed apples was around340 thousand tonnes (2018 harvest).

According to representatives of Speranța Con, the supply of apples from the orchards will be fully completed this week. Already now, apples from cold storage facilities account for the bulk of the raw materials supplied to concentrate factories. Experts of the association note that “in the last third of the harvesting, many agricultural producers, fearing sudden cold weather, put apples in refrigerators without primary sorting. As exports intensify in November-December, a large volume of apples is sorted now and sent for processing.”

Read also: 5 good news for the apple business in Eastern Europe – Andriy Yarmak

According to the processors’ forecast, factories will receive no more than 3-5 thousand tonnes of apples by the end of December 2021. The price will not change by the end of the year – up to 1.4 MDL/kg ($0.08/kg). Next year, the dynamics of raw materials supplies to factories will depend on the “fresh market” situation. However, it is almost certain that the volume of apple processing in winter and spring 2022 will be significantly lower than in the same period in 2021 (around 40 thousand tonnes).

Сообщение Moldova will process more apples this season than in 2018/19 despile lower harvest появились сначала на EastFruit.

According to EastFruit analysts, despite record apple harvests in the region’s countries and the completion of harvesting of late varieties, prices for industrial apples are not decreasing now. Moreover, there is even a tendency for industrial apple prices to rise to 0.30-0.35 PLN/kg ($0.07-0.09/kg) in Poland.

What are the reasons for price stability, and can they rise in the future? Let’s figure it out.

Despite the fact that the demand for apple juice concentrate has been declining globally for many years in a row, the supply and demand have now stabilized. Therefore, if its production rises or falls sharply, prices react more sharply.

Given the high global inflation, as well as the record figures ​​the FAO Food Price Index reached, prices for apple juice concentrate have also started to rise. The growth in prices was further enhanced by the factor of a sharp increase in the cost of transportation – after all, the United States is the largest market for apple juice concentrate in the world, and China is the largest exporter. Accordingly, sales markets and producers are separated by large distances.

However, the most important factor was a larger than expected decline in the US apple harvest in 2021. According to preliminary estimates of local associations, the apple harvest in the US may turn out to be the lowest in the last 9 years, which has already affected the apple concentrate market. As less raw materials became available, the US demand for imports increased sharply.

Producers of apple concentrate in Poland were the first in our region to react by raising purchase prices for industrial apples. By the way, Poland is the second largest exporter of apple juice concentrate in the world after China, although Turkey is now quickly catching up with it.

What about the prices for industrial apples in Ukraine and Russia? According to Fruit-Inform.com project analysts, the prices for apples for processing remain stable. Moreover, it is obvious that producers of apple juice concentrate are ready to pay more for large volumes. “Large enterprises sell apples for processing in large batches at 2.5-3.0 UAH/kg ($0.10-0.11) including VAT — a very good price, given that apples on the fresh market are only slightly more expensive now. But processors manage to buy small batches of industrial apples even at 1.8 UAH/kg ($0.06-0.07). Moreover, Ukrainian processors have an abundance of offers now,” says Ievgen Kuzin, head of international projects at APK-Inform: vegetables and fruits.

According to APK-Inform: vegetables and fruits, prices for industrial apples in Russia are also stable and range from 7 to 10 RUB/kg. However, as Russia is also an importer of apple concentrate, industrial apples are always more expensive here.

Prices for industrial apples In Moldova are now stable and amount to 1.20-1.40 MDL/kg ($0.07-0.08/kg), although some enterprises agree on a higher price level.

We can say that the first prerequisites for the rise in prices for industrial apples have already appeared on the regional market. However, the apple supply is still sufficient, and it is difficult to store industrial apples for long. Thus, an increase in prices can be expected after the flow of offers for commercial apples that cannot be stored decreases and offer for apples rejected during sorting appears.

Сообщение Will prices for industrial apples in Ukraine, Moldova and Russia increase? появились сначала на EastFruit.

The Speranta-Con Cannery Producers Association in Moldova stated that after temperatures fell to almost zero in January and early February, the supply of apples from refrigerated storage to Moldovan canning factories for processing will increase by the end of this month. Also, in March-April, this process will continue and most likely intensify.

At first glance, their optimism is surprising. According to the estimates by specialists from producer and trader organizations, approximately 180,000-200,000 tons of apples were stored in refrigerators by the end of autumn last year. On average, this is 50,000-70,000 tons less than in the previous 2-3 years. Due to the lack of supply of relatively inexpensive and more or less high-quality apples in the domestic market, the largest supermarket chains started importing this product into the country last autumn. Consequently, one would assume that even if retail does not have enough cheap local apples, the chances of processors being able to purchase products from refrigerators at local farms are generally scarce. However, Speranta-Con thinks differently. In their opinion, there are at least three prerequisites to be relied upon for an increase in supplies of industrial apples in the spring.

Read also: Moldovan apples can’t compete in prices with imports from Ukraine and Poland in local retail

Firstly, the sharp decrease in the volume and quality of the apple harvest due to drought (from 610,000 tons in 2019 to 430,000 tons in 2020) last year, many apples of the second quality category as well as small ones were stored in refrigerators. The hope that the demand for these products in Russia will be high in winter was only partially justified. As noted by the largest Moldovan traders, their Russian partners-buyers are concerned about the high stock balances of local farmers due to the declining effective demand of end consumers. Traders in Russia expect high-quality from imported products at reasonable prices. Therefore, there is a possibility that a certain amount of Moldovan apples of low quality intended for exports will eventually be sold on the domestic market, including for processing.

Secondly, market operators draw attention to the fact that an increase in the supply of apples for processing often is a side effect from increased exports. In the process of preparing export consignments in refrigerators, additional sorting is usually carried out. As a result, any rejection apples are sold to canneries instead. From this point of view, low supplies of apples for processing in January-February is also an indicator that the exports of dessert apples are relatively low and not reaching previous years winter levels (20,000-30,000 tons per month).

Speranta-Con representatives state that in regards to industrial apples for applesauce, for example, Orhei-Vit would be in the best position for wanting to purchase tens of tons of raw materials per day. At worst, concentrate producers such as T.B. Fruit and others need a guaranteed supply of hundreds of tons of apples per day for the rhythmic work of factories.

Finally, the third reason for the forecasted spring supply of apples to processing plants is the rejection of products with expiring shelf life. The volumes of such products in the last 2-3 years have been small with 3-5% of the tonnage pledged for storage but possibly more this year.

Сообщение Forecast: industrial apple supplies to processors in Moldova will increase in March-April появились сначала на EastFruit.