Apple Prices Explained
Apple prices plunged 7.9% in the retail market as its supply came plenty in the market, thanks to the great growing weather. Apple orchards have moderate temperatures with nice moist soil.
Additionally, lower freight costs and the changing dynamics in the export market contribute to its cooling prices.
Why are apple prices fluctuating?
1. Increasing Production Costs
From March 2020 to April 2023, inflation costs for fresh fruits posted at 14%, with apples at 17%. Additionally, since 2020 the cost to buy apples is up 22%, however, its growing value has increased by 73%.
Furthermore, issues about low minimum wage for the H-2A temporary visa program prompted foreign workers to look for more profitable farming jobs in other countries. Overall, these compounding factors largely contribute to the varying apple prices.
2. Tight Market Competition
The cooling gas prices in the U.S due to the country’s increased supply made apple growers ship their produce across other states, ultimately increasing competition between different parts of the country,
Additionally, the Indian tariff on U.S. products, including apples, offset the country’s demand as inventory piled.
While India lifted the tax, American produce still has low marketability in the Indian market as the country already found less compromising apple exports from Turkey and Iran. Thus, the shifting of trading relations in the market openly contributed to the falling apple prices.
3. Weather Conditions
The amount and quality of apple crops are significantly influenced by the weather.
For example, the high temperatures in the major producing provinces of Shaanxi and Shandong affected apple yields in China, leading to a 20% decrease in its exports to only 770,000 metric tons
Additionally, several northern and western provinces experienced low market returns which spurred its growers to cut down apple trees, replacing more profitable crops. Furthermore, the country’s aging farmers impact its orchard management. Thus, this adds pressure to apple price fluctuations.
4. Competition with other Fruits
Due to the wide range of options accessible to customers affected by taste, nutritional considerations, and seasonal availability, apples are vulnerable to competition from other fruits in terms of price.
Overall, apple prices thread through the changes in supply and demand dynamics, influenced by the wide variety of fruits available in the market.
Which variables impact the price of apples?
- Increasing Production Costs
- Tight Market Competition
- Weather Conditions
- Competition with other Fruits
- Pests and Diseases
- Global Market Conditions
Where does apple come from?
Originally from Kazakhstan in Central Asia, apples are now a popular and widely farmed fruit that is grown all over the world. These round and edible fruit comes in different varieties:
1. Red Delicious Apple – The most popular apple variety in the U.S. is known for its vibrant red color and mildly sweet flavor.
2. Gala Apple – This variety has a crisp texture that tastes mild and sweet. Additionally, it’s one of the lighter-hued red apples, boasting bright-yellow undertones.
3. Pink Lady – With distinctive pinkish-red skin and a sweet-tart flavor, pink lady apples are popular for both eating fresh and cooking.
4. Fuji Apple – It’s a large crisp apple with an intense sweetness that makes this an ideal candidate for eating raw.
5. Granny Smith Apple – Recognizable for its bright green color, it has a crisp texture and a tart taste, making it well suited for both snacking and baking.
6. Mcintosh Apple – Known for its tender texture, aromatic flavor, and slightly tart taste.
7. Golden Delicious Apple – These yellowish-green apples have a sweet and mellow flavor, making them delectable for eating fresh, baking, or cooking.
8. Honeycrisp Apple – Honeycrisp apples are popular for their sweet and juicy taste along with a crisp texture.
What are the uses of apples?
Apples are known for their high nutritional content including antioxidants, fiber, and vitamin C. Their low-calorie content makes them a popular choice for those aiming to manage weight and maintain overall health.
Moreover, they are versatile fruits that are useful for various ranges of industrial purposes in addition to being consumed as a fruit. Some of the industrial uses of apples include:
1. Apple Cider – One of the industrial processes is the fermentation of apple juice to produce apple cider vinegar. It finds application in health products, cooking, and as a natural cleaning agent.
2. Apple Extract and Flavoring – They are used in the food and beverage industry to enhance the flavor of beverages, baked goods, and candies.
3. Personal Care Products – The cosmetic and personal care industry uses apple extracts for their antioxidant properties, incorporating them into skincare products, shampoos, and conditioners.
4. Pharmaceutical and Nutraceutical Uses – Using industrial processes, apple juice is fermented to produce apple cider vinegar, which finds use in food products, personal care items, and environmentally friendly cleaning solutions.
What is the future price of apples?
The development of new hybrid varieties, the expansion of contract farming, and the growing health advantages of apples drive the growth of the global market.
Additionally, the increased demand for organic apples is particularly notable in the United States and Europe, where consumers prioritize health and wellness.
Moreover, the rising demand for fresh food in emerging and developing countries, the health benefits of apples, and developments in logistics and e-commerce are some of the main factors driving this expansion.
Thus, apple prices will be around $2.03 per kilogram in 2028 with an estimated market size of $109.37 billion, growing at a CAGR of 2% during the forecast period 2023-2028.