Industrial apples - a drastic drop in supply

The beginning of this week brought further drops in the prices of industrial apples. In about a week, already after significant previous decreases, the purchase prices of regular industry apples decreased by over one-fifth. For most orchard owners, in an environment where it was widely believed that processing plants would definitely lower raw material prices, such drops were a shock. It was perceived as a catastrophe, as we wrote on the pages of fresh-market.pl (here).

The prices of regular industry apples dropped on Monday, November 18, to only 0.70-0.80 PLN/kg. The average price fell below the level from the same period of the previous year! This, considering the supply reality after weaker harvests this year, indicated that things had definitely taken a turn for the worse. That prices for industrial apples fell too low in relation to the supply-demand ratio.

However, this time the reaction of the orchard owners was swift and uniform. There was a drastic drop in the supply of industrial apples being delivered to purchase points. The flow of raw material essentially dried up within a day. And it turned out that this had an impact on prices.

Purchase points, where prices dropped the most, are now offering 0.80 PLN/kg again. The change is not significant at the moment. Because the price range in the country is currently mostly 0.80-0.85 PLN/kg, reflecting an increase of 6.4 percent. However, prices may strengthen further if there is still a shortage of apples at the purchase points. Currently, the average price is once again higher year-on-year, but only by 3 groszy, which is just under 4 percent. In October, the price advantage of current prices over last year's was above +50 percent, and at times reached up to +80 percent.