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Falling industrial apple prices in Moldova due to global market conditions

At the start of the autumn harvest, industrial processors in Moldova paid 3.6–3.8 lei/kg (€0.18–0.19) for apples. By the end of the current week, some factories attempted to lower the "working price" to 3.3 lei/kg (€0.17) for apples delivered directly from orchards.

Factory managers cite four main reasons for the price decline. First, industrial apple purchase prices have fallen in Ukraine and, especially, Poland, which serve as pricing benchmarks for Moldova. In Poland, apple concentrate raw material prices began the season at €0.21/kg, briefly stayed around €0.18–0.19/kg, and dropped to €0.16/kg by mid-September. In Ukraine, prices are roughly €0.01/kg lower, while Moldovan prices are about €0.01/kg higher, though this may only be a temporary level.

Second, a cold cyclone from northwest Europe is raising concerns about the remaining apple crop in Poland. If the weather damages the harvest, factories may receive a larger apple supply, further pushing prices down, potentially to €0.12–0.13/kg.

Third, optimistic forecasts for apple concentrate production in China, at least 500,000–520,000 tons, possibly up to 550,000 tons, are expected to put additional downward pressure on prices. Chinese concentrate costs and sales prices are significantly lower than in Europe or the U.S.

Finally, global demand for apple juice has declined sharply, which is considered the main reason for the price pressure. In the United States, for example, demand has fallen by more than 25%, according to industry experts.

Source: logos-pres.md