Vanguard is pleased to give an update on Fuji Apples out of China.
Volume & Price
Harvest is well underway on Fuji apples from Shandong and Shaanxi provinces in China. Volumes from these regions are very similar to the 2017 crop, which is a significant contrast to last year. The 2018 crop saw a 40 – 50% reduction on typical volumes. For this season we expect that Chinese apples will be in abundance. As ours is a supply and demand business we can expect to see lower prices than we experienced in 2018.
If we look back to the 2017 season as a benchmark, most people estimate the apple prices to range between USD $0.07 to USD $1.14 per kg. Growers of course are hoping to achieve much higher prices, closer to the 2018 season, but time will tell. Chinese growers have good storage capacity so it will be a delicate balance of “sell now“ or store and wait to see how the market reacts.
For example, it is certainly possible that India and Russia will once again open their markets to Chinese apples. This would be welcome news indeed for Chinese apple growers as it would help support higher prices overall given increased global demand for their fruit.
In the Shandong area the season got off to a slightly slower start than it typically does due to cold weather. Apple color this season is more “brilliant pink” as a result though, rather than last year’s dark red.
We expect to see a 2-tiered market this season with top-quality demanding a higher price. There will be a “value price “option for the fruit of smaller size, or with some scarring. Comparing this season to last season we are seeing smaller sizes and a higher percentage of a “value priced “grade in general.
Consumption of Chinese apples is divided into 85% domestic consumption, 5% processing consumption, and around 10% export consumption.
How are domestic households enjoying China Fuji apples this time of year? Take a look at this recipe for Chinese Apple Herbal Soupfor a warm and delicious treat.