Industrial apples - there were discounts, will there be increases?

The industrial apple procurement season is gaining momentum in Poland, although it is still in its early stages. However, a lot has already transpired. We have seen two price corrections at the procurement markets, despite the widely acknowledged reality that we are facing another season with a limited supply of industrial apples and high demand for this raw material.

Despite this, processing plants have lowered industry prices, causing concern among orchard owners and leading to protests from orchard organizations. The key question now circulating in the industry is: what will happen next? After two downward price corrections, will the prices for industrial apple procurement rise this time?

Currently, the prices for regular industrial procurement mostly range from 0.90 to 0.95 PLN/kg (0.21 to 0.22 EUR/kg). This marks a 15% decrease from the price peak earlier this month. Dry industrial apples are also being procured, typically at prices ranging from 0.94 to 1.04 PLN/kg (0.22 to 0.24 EUR/kg), with a decrease of almost 18% in this segment.

Of course, current prices are still significantly higher compared to the previous year. For regular industrial apples, there has been an 86% increase, and for dry industrial apples, a 77% increase. This clearly reflects the current supply-demand dynamics in the industrial apple segment. However, orchard owners believe that the industry is still undervalued. The main argument raised by both producers and experts is that the availability of raw materials will be significantly lower this season than last year. Moreover, the industry is entering this period of low supply after a previous season where processors had to fight for apples.

In other words, the 2024/2025 season is not starting from a low price level with the prospect of a plentiful supply of apples flowing to the plants. On the contrary, despite the recent reductions, we are starting at relatively high prices with the prospect of a significant supply gap. This gap will not be filled by importing concentrate from China (which is already happening). All these factors suggest that we can expect a return to an upward trend in industrial apple procurement prices sooner or later.