The production outlook of US apple is currently projected to exceed 11 billion pounds. This is coming as June saw a strong increase in German grower prices for flowers, plants and lettuce.
Producer prices of agricultural products in the European country were 6.8% higher in June this year than in the same period the previous year. The German Statistical Office (Destatis) reports that prices fell by 0.7% compared to the previous month of May 2021.
As in previous months, the high price increase of plant products in June 2021 by 8.6% compared to June 2020 is mainly due to the higher prices for grains. Grain prices were 27.9% higher than the previous month’s level. In May 2021 the increase in grain prices was 26.7%.
For products from the vegetable and horticultural sector, the price increase in June 2021 was 5.4% compared to June 2020. The decisive factor for this was the increase in prices for flowers and plants (+15.0%).
The prices for vegetables as a whole fell by 0.7%. Price decreases were registered for cauliflower and asparagus in particular. For cauliflower, high temperatures and a correspondingly large harvest led to a clear price drop (-30.1%).
Due to declining quality, demand for asparagus fell more towards the end of the season than last year, leading to falling prices (-12.4%). On the other hand, due to bad weather, prices for lettuce rose significantly (+26.3%).
For ware potatoes, prices compared to the previous month have already been falling since September 2019. In June 2021, they were 56.8% lower than in the previous year (May 2021: 53.2% compared to May 2020).
In June 2021, there was a large supply due to the larger harvest compared to the previous year. Nevertheless, prices rose slightly by 2.2% compared to the previous month due to the new harvest.
In the meantime, the US Apple Association at its 126th annual Outlook Conference reported that while the COVID-19 pandemic has tested the apple industry up and down the supply chain, it has also presented unique opportunities.
The conference is an in-person, two-day meeting showcasing growers, apple business leaders, high-profile speaker and topics.
Kicking off the conference, Agriculture Secretary, Tom Vilsack ,spoke to attendees via video. Vilsack spoke of challenges facing the apple industry, including the need for further work to resolve outstanding trade commitments and tariff disputes. He also commended the apple industry for its work on the bipartisan Farm Workforce Modernisation Act.
He said, “this legislation provides farm workers, many of whom have lived in this country for years, an opportunity to earn citizenship. It will also reform the H-2A program and provide more flexibility for employers and streamlines the visa process.”
As for those aforementioned opportunities, and despite a challenging 18 months, apple production is expected to exceed 11 billion pounds this crop year.
USApple’s Industry Outlook 2021 which is written by Chris Gerlach, provides current data and analysis on US and global apple production, utilization and trade.
According to a USApple analysis of Agriculture Department data, total US apple production for the 2021-22 crop year will exceed 11.1 billion pounds or 265.4 million bushels. This represents a 2.7 percent increase compared to 2020-21 crop year production of 258.6 million bushels.
Gala is expected to retain the top spot with almost 49.3 million bushels produced, accounting for around 19 percent of the U.S. apple market. Rounding out the top five are Red Delicious (35.7 m bu), Honeycrisp (31 m bu), Fuji (29.1 m bu) and Granny Smith (27.2 m bu). In 2020, the top five varieties were: 1) Gala 2) Red Delicious 3) Fuji 4) Honeycrisp and 5) Granny Smith.
The US retains a positive trade balance. In the 2020-21 crop year, the U.S. exported almost 41 million bushels of fresh apples while only importing around 5.2 million bushels. These net exports (35.6 m bu) are valued at almost $773.8 million
“Year-over-year, while the balance of trade has declined with respect to quantity, it has increased in value”, said Gerlach, adding, ‘’we are losing domestic workers faster than we can replace them. Increasingly, growers have turned to seasonal migrant labor, H-2A workers.’’
From 2014 to 2020, the average annual crop production employment fell by three percent and, in orchards, it declined by 20 percent.
Throughout the pandemic, apple packers and marketers responded by offering bagged apples giving consumers added peace of mind by reducing product handling. The most significant trend to come out of the pandemic was the rate at which shoppers embraced e-commerce grocery shopping, which aided apple sales.
