Industrial apples - the industry is buzzing again.
What has happened in recent days with the prices of industrial apples has caused a stir among orchard owners. Suddenly, and without any clear reason, the prices of these fruits dropped at most collection points. And it was not just a small correction, but a clear trend can now be observed.
Currently, the prices for regular industry collection are mostly in the range of 0.95-1.00 PLN/kg (0.22-0.23 EUR/kg). This marks a decrease of nearly 11 percent from the price peak at the beginning of the current month. Prices for dry industry collection are now in the range of 0.97-1.10 PLN/kg (0.23-0.26 EUR/kg), representing a reduction of over 13 percent. We reported on the first of these decreases on the pages of fresh-market.pl last week, on Tuesday.
The apple industry is in turmoil. Orchard owners widely express their surprise and outrage. The Polish Orchard Growers' Association has issued a statement in this tone. It is pointed out that the current reductions in apple collection prices come right after information that this year's apple harvest in Europe will be lower than last year's. Also, after experts' statements that in the current season, we should expect a continued high demand for apple concentrate and its high prices.
There is no talk of a decrease in demand for the raw material for concentrate production and a deterioration in the profitability of this production in the near future. On the other hand, there is also no talk of any significant improvement in the supply of the raw material. And experts emphasize that in the perspective of the entire 2024/2025 season, there will most likely be a shortage again.
So where do these price reductions come from, and why are they so common? In the industry, there are voices suggesting that the Office of Competition and Consumer Protection (UOKiK) should look into the matter. So, we have something like a deja vu. After all, we are familiar with this situation. Processors have once again decided to use their competitive advantage over orchard owners. The timing they chose was not random. There are slightly more early varieties of apples on the market. There are still some stocks in storage. And the workweek is shorter due to a holiday, so some accumulation of available apples can be expected despite everything.
The question now is, what will happen next? Will this attempt to lower prices turn out to be short-lived and ineffective, as a similar one did at the end of July this year? Or will the confusion be greater this time, and prices will drop for a longer period? This will happen if a sufficient number of suppliers start to fear further price cuts and increase their current deliveries of raw materials to collection points. Unfortunately, we have seen this mechanism in action on the fruit market more than once.