Issue link: https://read.dmtmag.com/i/84143
Apples GLOBAL APPLE OUTLOOK Production is down in many countries, but China was expecting a record crop. by Richard Lehnert n paper, the world's supply of apples looks fairly robust. Looks can be deceiv- ing, however, and most U.S. marketers are looking at their world as if it is short on apples for the 2012-13 season. Part of the reason is China. The world's largest producer with more than Only 12 percent of China's apples went into the juice concentrate market last half the crop, China is expected to produce a record crop about 8 percent larger than last year. Eight percent more in China is a lot more bushels—144 million bushels more, equivalent to Wash- ington State's entire crop. But Chinese apples aren't fully integrated into the world's markets. In much of the rest of the world, apple year; 82 percent went into China's domestic market as fresh apples. Michael Choi, Zhonglu America supplies are lower this year, and outside of China, the crop is looking smaller in the United States, Canada, Mexico, and Europe. At the U.S. Apple Association Outlook and Marketing Conference in Chicago in late August, representa- tives of apple organizations from around the world gave reports on the size and condition of their local crop. China Michael Choi, president of Zhonglu America Corporation, a subsidiary of one of the oldest and largest apple juice concentrate producers in China, reported that the 2012 crop is pegged at 38.7 million bushels (about 10 times the U.S. crop). China's apple production has been increas- ing every year, Choi said, but apple juice con- centrate production is falling as China's domestic market absorbs ever more fresh apples. Growers there are starting to hold more apples in storage, looking toward better profits from a longer fresh-marketing period. This gradual withdrawal of China from the &!)$(" &!(&)$(" >)778,%2-2',)7;-()*36 2%663;86))63;74%'-2+7 +,-$& .($-( ').(- )( (1/$&& +.(($("" + $ " "!#!"! )0)--)+ )0#.--& ).& )+% +).()" +),-( )()'1!- )$(-)+%, )$(-$$!- )(/ 1)+, + $"#-- .+(1&(*+1 +, ;;;4,-0&63;2;)0(-2+'31 PHIL BROWN WELDING CORP. ,32) • %< • ?-0) ($32/0-2-',-+%2 Contact Vine Tech Equipment your Northwest Phil Brown Dealer ;;;:-2)8)',)59-41)28'31 28 OCTOBER 2012 GOOD FRUIT GROWER >!6%'83613928)(:%0:) -7%:%-0%&0) >=(6%90-'(6-:)26300)6',%-2 *36032+71338,34)6%8-32 >"7)7)<-78-2+86%'836 ,=(6%90-'7=78)1 >(.978%&0),-8',*36(-**)6)28 (6%;&%6,)-+,87 > )%613928)(%9831%8-' &3<78348346):)2870-(-2+ apple juice concentrate market has greatly strengthened prices for juice apples world- wide. Only 12 percent of China's apples went into this market last year, as 82 percent went into China's domestic market as fresh apples, Choi said. China's production of concentrate peaked in 2007 at 1.1 metric tons and has been declin- ing since. From the big crop this year, China is looking to export about 710,000 metric tons of concentrate, up from 626,000 tons last year. Mexico Leighton Romney, a board member of Paquime, a large family-owned grower, packer, and importer of apples in Mexico, spoke about the Mexican crop. Mexico is the U.S.'s major export market, and the amount Mexico imports depends on how much it produces domestically. Mexico is expecting a short crop of 10 mil- lion bushels this year, Romney said. With domestic consumption pegged at 29.7 million bushels, that leaves a deficit of 19.7 million bushels. The Mexican apple and peach crops were both heavily damaged by freezes. The United States is expected to take 47 percent of the 19.7 million bushel deficit, Romney said. "Apples are expensive in Mexico, and will be more so this year," he said, as prices will be higher because of the reduced production. Europe Philippe Binard is secretary general of the World Apple and Pear Association in Brussels, www.goodfruit.com Building the Best Since 1964!