Apple export earnings, production drops in Bhutan
Earnings from apple exports in Bhutan have dropped almost three times compared to last year. Last ye…Earnings from apple exports in Bhutan have dropped almost three times compared to last year. Last year, apple exports made $4.4 million, whilst this year they only made $1.3 million.
However, the drop is due to the poor season this year. Production of apples reduced from 6,772 metric tonnes last year to only 2,896 metric tonnes this year.
Bhutan Exporters Association general secretary in Phuentsholing, Tshering Yeshey attributed the decrease in production to “urbanization” meaning that more and more orchards are lost to urbanization. “Although there isn’t huge impact, apple orchards across the country are destroyed as they give way to construction,” he said. The general secretary said the government must look to intervene in such a way that the orchards are not destroyed and apple production is not affected.
Meanwhile, competition from other apple exporting countries has also increased. Countries like China, Africa, New Zealand, Australia, Fiji, and India has also hit the market in Bangladesh where most of Bhutan’s apples are sold. Apple exports beyond Bangladesh and India were not feasible. Transportation costs incurred are expensive.
Like last year, the minimum (floor) price this year was set at USD 650. The price was fixed taking into consideration the production exchange rate in India, including market dynamics. In 2013, the fruit was exported at USD 700, which was more than the floor price.
Starting from 2001 until this year, apple growers have generated USD 25.25M in total. The highest earnings were generated in 2014.