According to EastFruit analysts, the prices paid for apples intended for processing into apple juice and concentrate have fallen significantly last week. As the harvest has continued in domestic farms and the industrial apple supply from Belarus has increased, prices have been declining almost daily.
While early in the previous week prices stood at $ 0.12 per kg, by Friday they had dropped to $ 0.10-0.09 per kg. Local producers are reacting to the price dynamics faster than the suppliers of Belarusian apples, so their sales are going much faster. At the moment, processors have already ceased to buy apples for more than $ 0.09 per kg. Also, some processors have started to demand a more substantial delay in the payments for the apples supplied to them.
Nevertheless, even such a price is still almost twice as high as that currently paid to producers in Moldova, Poland and Ukraine. Moreover, in these countries, the delay in the payments already exceeds 60 days. Some growers even doubt that processors will fully pay what they were promised, given the threat of a huge supply of concentrate.
Under these conditions, Russian industrial apple processors will also have a hard time selling finished products, because almost all the countries mentioned above and even Belarus are preparing to produce record quantities of apple concentrate.
In the period from 2013 to 2017, the import of apples fell from 1.40 to 0.71 million MT, according to the data of the report “Analysis of the apples market in Russia” prepared by BusinesStat.
“The main reason for the reduction in imports in these years was Russia 2014 reaction on the sanctions, boycotting the import of agricultural products (including apples) from the EU, USA, Canada, Australia and Norway”, the publication reads.
It is specified that the growth was registered for the first time in five years in 2017 by 2.7%. In addition, over this period, the structure of imports has changed in the supplier countries. So, in 2013 and 2014 years. The main supplier of apples to the Russian market was Poland, whose share in total supplies was 37.2 – 50.3%. Import from this country stopped due to the decision to ban the import of fruit by the Rosselkhoznadzor on August 1, 2014.
The main importer in 2015 was Belarus with 518,000 MT(51.5%). According to statistics of BusinesStat, the volume of supplies of Belarus has increased 4.5 times since 2013. Market participants expressed the opinion that the most likely reason for the increase in Belorussian supplies was the re-export of apples from other countries.
In the following years (2016-2017), the supply of apples from Belarus to Russia declined and in 2017 amounted to 58,400 MT.