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EU agricultural markets short-term outlook – spring 2023

EU production of apples expected to be around 12.2 million tons in 2022/23

Apples: High storage costs direct more apples into processing
The EU production of apples is expected to be around 12.2 million t in 2022/23 (a volume similar to the last marketing year, 2.6% above 5-year average). A record high harvest in PL (4.2 million t, +5% year-on-year) and high crops in IT (+7%) compensated for the lower than usual harvesting in FR (-10%). Lower production was also observed in other EU countries mainly HU, RO, ES, and PT.

Almost half of the production is expected to be channelled to processing rather than to be stored. This is a result of a higher availability of lower-quality apples not suitable for fresh consumption, their low prices, lower export opportunities and high energy (storage) costs. In addition, problems with the availability of seasonal workers in some EU countries delayed harvests, which had an implication on the fruit quality. In total, around 5.8 million t of apples are expected to be sold in the EU for fresh consumption (-9% year-on-year) and 5.7 million t for processing (+8% year-on-year).

10-year low EU production of oranges
As a result of dry and hot weather conditions in the main EU producing countries (especially in ES and IT), 2022/23 EU orange production is expected to decline by 13% to around 5.7 million t. A comparably low production was last time recorded in 2012/13. In case of ES (more than 50% of EU production), the drop of 16% is attributed to lower yields while the area remained relatively stable. In IT, the area decline was combined with lower yields, and so the production was 20% below last year. In the EU, the area decline was slightly lower (-5%) than the yield change (-8%).

Besides lower yields of oranges, the quality of the fruit is also reported to be lower. Usually, lower-quality oranges are destined for processing, while, due to the lower supply, some of these are likely to end up in fresh consumption as well. Overall, it is expected that the drop in the production would have a stronger impact in processing than in fresh consumption (-32% and -9% respectively).

While the supply for processing could be historically low, the production for fresh consumption could remain low, but at comparable levels observed in past years. As a result of the low production, producer prices increased (except PT), but they might not be high enough to compensate the rising cost of inputs, mainly energy and fertilisers.

Click here to read the full report

Source: agriculture.ec.europa.eu

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