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South Africa: extremely low domestic apple price the result of inaccurate data

Figures released last week on the national average apple price in South Africa, that suggested that the apple price was at a ten year low, elicited quite a bit of reaction from the South African apple industry.

Market agencies noted that their average prices were six or seven times the reported price of R1.64 per kilogram, and that even though demand for apples had slowed down during the early weeks of the coronavirus lockdown, demand has picked up again last week.

The controversial price was, however, based upon erroneous apple volumes in the data received from some of the markets and apple prices are not, in fact, as disastrously low.

Currently, elucidates Dr Johnny van der Merwe of agricultural market analyst AMTrends, the national average apple price is just below R7 (0.34 euro) per kilogram. The price is 1% higher than last year this time, but it is 7% down compared to last month.

Apple volumes and prices across all of South Africa's fresh produce markets at the moment. Note the high volumes sent to Johannesburg and Tshwane fresh produce markets (graph supplied by AMTrends)

Volumes on the national markets are 8% lower than last year this time, he adds, with the most volumes (around 770 tonnes) at the Johannesburg market of the approximately 2,200 tonnes of apples currently at fresh produce markets.

At the moment South African apple producers are wrapping up the Regular Atmosphere season and the Controlled Atmosphere season will start, reducing supplies to the markets which should support prices.

For more information:
Dr Johnny van der Merwe
AMTrends
Tel: +27 73 140 2698
Email: [email protected]
https://amtrends.co.za/

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