Are industrial apple prices going up again?
Industrial apple purchasing prices have rebounded after the recent decrease, as predicted. Currently, the prices for regular industrial apples range mostly from 0.98 to 1.13 PLN/kg, and for dried ones from 1.05 to 1.20 PLN/kg. It should be noted that apple purchasing prices vary significantly by region.
The upper end of the price range mentioned above represents offers from apple hubs in the Sandomierz and Lublin regions. Lower prices are typical for the Mazovia region and the orchard area in the Łódź Voivodeship. Generally, we are seeing an overall strengthening of industrial apple purchasing prices. On average, they are about 10% higher than the lowest price after the last decrease.
The question is, what will happen next? Will industrial apple purchasing prices continue to rise? Many orchardists are hopeful, as apple harvests are coming to an end, and the flow of raw material to processing plants will decrease. However, there are also pessimists who point out that when deliveries to the plants decrease, processors will reduce their activity (as is usually the case in winter). This will result in a decrease not only in supply but also in demand. Consequently, instead of price increases, we may see a decrease.
Which scenario is more likely? It's hard to say because everyone knows that pricing dynamics in this processing sector are not solely dependent on supply and demand relations. However, it is worth noting that despite high demand for concentrate, there was no correction in industrial apple purchasing prices after the harvest last year. Prices continued to rise throughout October, albeit at a significantly lower level than the current one.
It seems that much depends on the prices of dessert apples. A rapid increase in their prices will reduce the potential raw material available for the industry even further. Any significant price decrease will halt deliveries. If dessert apple prices remain stable, deliveries to the industry will be more attractive to orchardists. Consequently, processors will find it easier to negotiate prices.