As Christmas is coming closer, demand for apples has slowed down a bit, says Anna Gabler, commercial director of Agro Queens Sp. z o.o.: "Although we had extremely high demand in November, December has turned out slow in sales so far. We stimulated our offers to attract the customers and help them move products from the stores, however the amount of orders was lower than during previous seasons. Usually, in December the apples are replaced by citrus in the households."
Gabler emphasizes that the prices for apples destined for the processing industry have increased significantly, and she doesn't think prices will return to what they once were. "We used to sell both categories, both conventional and organic apples, with the latter being for processing. Here, the demand is quite strong, but because of the frost resulting in lower volumes, processors were surprised with higher prices and have kept their purchasing decisions open up until the end. Apples have been expensive since the very beginning of the season. However, with the lower volume and high inflation, I think that the price of Polish apples will never go back to 0.20 EUR/kg for juice raw material from organic apples. We sold less volumes than usual. Growers of organic apples seem to be casino players and all of the volumes which are available for the processing industry are instead kept in storage, with a hope to fetch an even higher price for them later on. I do not like that kind of thinking and cooperation, it doesn't create trust between partners."
Thankfully, the first class apples are doing well at Agro Queens, Gabler explains. One specific market has become more challenging due to the larger sizes, this season: "In terms of class 1 apples, our sales are at a regular level, but this is because we work with our consortium BIO Queen, where producers work adhering to all quality standards and understand our customers' needs. The conventional trade is stable despite the lower quality, for which we have the hot summer to thank for. We sell loose, packed trays, bags, all what clients require. The only one barrier was the UK market, where customers used to buy small size apples. However, our apples are very large this year. We mostly have apples of the caliber 80+, followed by 60+."
"The current stocks are lower than they were last year at this point in the season. We must supply our customers all year round, but we must make use of our full offering of varieties. We also have lower stocks when it comes to the pears. Prices for class 1 apples are not extremely high at the moment; they must be competitive worldwide. The industry apple prices are high, local juice manufacturers buy directly from growers at 0.60 EUR/kg for juice quality from bio apples. This means dry, no leaves, no rotten apples, no difference in terms of variety. This situation is very good for the growers."
Although costs for Polish growers and exporters are higher, Gabler feels the higher prices for apples compensates for this, and doesn't think the Government should intervene further: "The main problem for Polish apple exporters comes down to increased costs, both for energy and labour. There are fewer people available due to the war going on in Ukraine. This problem isn't really solved or supported with special help from the government. That being said, financial support isn't really needed when prices are high. Too much EU regulation and artificial money will only lead us to a crisis. It's time to verify the market. It's like in nature; the strongest will survive. For now, with the end of year in sight, I would like to thank all of our customers, growers, and business partners for the long lasting cooperation, trust and loyalty. Happy holidays!"
For more information:
Anna Gabler
Agro Queens Sp. z o.o.
Tel: +48 502 84 2132
Email: [email protected]
www.agroqueens.com