How long will the Chinese apple price "soar"?
22 May 2019 - Media Release - Fresh Plaza
The price of Chinese apples has remained relatively stable in recent years. This year, however, the price reached record heights. Market analyst Yang Jun stated that similar conditions last occurred in 2014. The main reason for the significant price increase is the reduced production volume last year. The volume of apples that went into storage last year was smaller than in previous years, and the current supply volume is therefore smaller as well.
The last time the price reached similar heights was in 2014 when the supply volume from apples in storage was small and the production volume of substitute fruits was small as well. The apple price then reached a peak in July. The average price of apples from refrigerated storage was around 5.8 yuan [0.84 USD] per 0.5 kg.
This year is similar to 2014. The apple production volume in 2018 decreased and the volume of apples in storage was therefore much smaller than in previous years. The volume in storage was around 1.49 million tons on May 9th, 2019. That is around 40% smaller than in the year before. The constant price increase is therefore not surprising.
The limited volume in storage is a problem without short-term solution. traders with apples in storage are hesitant to sell because they hope the price will rise even further. Furthermore, the prices of other seasonal fruits have been relatively high this year. This lowers the pressure on the apple price. Current market conditions suggest that the apple price will maintain a high position and may increase even further.