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Recovery of EU apple prices this season

Recovery of EU apple prices this season

 

EU apple prices during the ongoing campaign are significantly above the average for the past five years, due to the small crop. According to Wapa/Prognosfruit data, this campaign’s crop is down 20% from the preceding year and 11% below the 5-year average.  Compared to the challenging 2018/19 campaign (excess of supply in some Member States, especially in Poland), 2019/20 has seen a great recovery in the sector. EU apple stocks on 1st December 2019 were at their lowest level since 2012.

Although the average EU apple price this campaign is well above five-year average, there are some divergences between Member States. Poland’s prices have seen the greatest recovery. French apple prices are above average but lower than the preceding campaign, as the French crop is actually larger this season. Meanwhile, German prices were slightly above average and Italian prices have recovered gradually from a difficult end to the previous marketing year.

For prices to remain high, EU internal demand will need to stay high. A mild winter could thwart this aim by dampening demand.

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EU apple production rising as demand falls

Imports of fresh apples decreased in the last 10 years and are not expected to recover, while exports, affected by the Russian ban since 2014, are striving to find new outlets on the world market and should continue to do so.

EU apple production is likely to increase in the future, particularly in Poland, while consumption of fresh apples per capita keeps on decreasing.

That is among the predictions in the European Commission’s EU Agricultural Outlook for 2016-2026.

The report says efforts are being made to limit the decreasing consumption of apples, such as promotion campaigns and the EU school fruit scheme.

“This implies that both net exports and use of apples for processing industries are expected to grow steadily in the coming decade following their current trends.

Imports of fresh apples decreased in the last 10 years and are not expected to recover, while exports, affected by the Russian ban since 2014, are striving to find new outlets on the world market and should continue to do so,” it also says.

Source: EU AGRICULTURAL OUTLOOK Prospect for the EU agricultural markets and income 2016-2026. December 2016