Exports to Taiwan rise 19 per cent, Hong Kong is up 27 per cent, Indonesia increses by 17 per cent and India is up 14 per cent
Last August, Washington apple growers were bracing for a potentially record crop of 142.3mn cartons (18 kg), just exceeding the 141.8mn boxes packed in 2014. Given the poor markets over the last several seasons, worsened by steadily increasing costs of production, it was an alarming prospect.
Anticipating inventory challenges in the coming months, the industry went to work setting up domestic retail promotions designed to quickly move a significant percentage of its fruit from storage. As it turned out, the Washington industry likely didn’t need to make the effort since packouts were subsequently revised downward to around 131mn cartons – 7 per cent below the original forecast.
Nonetheless, the promotional programmes were apparently quite effective, moving out large volumes of Gala, Honeycrisp and Cosmic Crisp to the point where there is some concern of running short of these popular varieties late in the shipping season. Sales of the iconic Red Delicious have also been impressive due in part to increased demand from export markets. As a consequence, apple FOB prices have been steadily rising since the beginning of the year, which growers welcomed – but with some frustration.
“This crop is definitely not as big as originally thought,” noted Marc Pflugrath of CMI Orchards in early February. “We’re getting our pricing in line now that we know what we’ve got to work with. I just wish the industry could get it ‘right’ from the beginning because it’s not that easy to raise a market.”
Pflugrath admits it’s not always clear how much fruit is hanging in the orchards. But given the industry’s struggles over the last many years, the frustration is understandable. Others are reserving final judgement on the season’s volume, however.
“Even though the estimate has been revised (lower), this is still a strong volume year,” says industry veteran Randy Eckert of River Valley Fruit. “Both Gala and Honeycrisp are definitely down but packouts of Granny Smith and Pink Lady are up. Still, this deal is definitely shaping up better than last season; inventories are tighter and FOB prices are strengthening.”
Washington’s exports are also on the rise, helped to no small extent by lower production from China and Turkey. According to industry data, international shipments are up more than 9 per cent to around 13.5mn cartons year-on-year as of mid-January. Mexico remains the leading destination at just over 3mn cartons but Taiwan has rebounded nicely by 19 per cent as have Hong Kong (+27 per cent), Indonesia (+17 per cent) and India (+14 per cent). The Washington industry is also hopeful that a US-India trade agreement, slated to substantially reduce import duties, will soon be ratified.
“We’re all crossing our fingers that the tariff will go down to where India can rebound with some volume,” said Pflugrath. “India is a red apple market and Cosmic Crisp has great potential there because it’s an excellent shipping variety with more production coming on every year for us.”
The full version of this article appears in the upcoming Asiafruit Magazine. For more coverage on US apples and pears subscribe HERE.
