Chinese apple supply exceeds demand
Compared with last year, Chinese apple prices are almost halved this year. Dalian's apple output t…Compared with last year, Chinese apple prices are almost halved this year.
Dalian's apple output this year was approximately 880,000 tons. Fuji apples with an 80 mm diameter are sold for 2.2 Yuan to 2.7 Yuan per 0.5 kilo. Last year the purchase price for the same apples was 3.5 Yuan or higher. This year, the price of Fuji apples with a 75 mm diameter is approximately 1.5 Yuan. The price last year was 2.5 Yuan or higher.
At the beginning of October 2014, wholesale apple prices started to rise, reaching a peak in March 2015 with wholesale prices of 10.21 Yuan per kilo. Prices stayed stable for one or two months but started to drop in May. On 11 September, prices fell down to 8.53 Yuan per kilo, a drop of 16% compared with six months earlier. On 16 October, the average wholesale apple price in China was 8.57 Yuan per kilo.
This year's main apple production areas in China are: Shandong, Shanxi and Hebei. The overall national apple output is estimated to increase by 20% compared to last year's output. This is the most substantial growth in three years. Several reasons caused the price drop in 2015. One aspect is that in every part of the country apple production areas increased their output.
In October 2014, promotion activities led to the highest apple prices in several years. But the high prices led to low sales numbers. In an earlier stage farmers were reluctant to sell. Leading to an excessive apple inventory in 2014. This is the direct cause of this year's apple oversupply.
Between January and May 2015, exports dropped 31% compared with the same period last year. The import over the same period increased with 366%. The monetary value grew 387%.