China: Fuji apple prices take hit
summary：Statistics of the Bureau of Forestry in Henan Province show that the total apple plant area in the province covers 240,857 hectares with a production volume of 3,457,300 tons annually. 60% of apple trees produce Fuji apples, of which the price has dropped...
Statistics of the Bureau of Forestry in Henan Province show that the total apple plant area in the province covers 240,857 hectares with a production volume of 3,457,300 tons annually. 60% of apple trees produce Fuji apples, of which the price has dropped by 30% to 50%.Because the costs of fertilizers and packaging continues to rise, farmers are loosing money. It is estimated that the income of fruit growers in the province has been reduced by 4 billion Yuan (€0.6 billion).
Main reasons for the low prices are oversupply on the market weak demand. 2013 was a small harvest and as a result apple prices started to climb. This trend continued in 2014, during which apple prices increased by almost 40%. As a result, farmers started to store the apple crop. The stored apples together with the crop coming on the markets is leading to a price decrease since June.
Export of apples has also decreased, whereas imports have increased, adding to the supply problem.