Speculators and low international prices are causing massive damage to the Chinese Fuji apple industry, to the extent that production could even come under threat in the Asian powerhouse.
That stark warning was issued by Steven Leung of Alfa Fruit Packers, who was speaking at last week’s Asiafruit Congress in Hong Kong.
China’s apple production was 32 million tonnes in 2009, representing a staggering 44.5 per cent of global production.
But good apple prices and the availability of controlled atmosphere and SmartFresh technologies have brought speculators who are destabilising the category, Leung claimed.
Large volumes of Fuji are still in storage, pushing early season prices for Gala, Golden Delicious and Red General down by 20 per cent this year.
And with lower international prices coinciding with an increase in production costs - Chinese labour costs have gone up fourfold in the last four years as growers struggle to attract workers to the trade - the industry is under threat.
Currency appreciation, inflation, packaging and input cost increases are also hitting growers.
“There will be no more cheap Chinese Fuji,” Leung predicted. “Unless world apple prices increase there’s not much future for Chinese Fuji.”
China’s overall apple production has increased by five million tonnes in the last five years.
Around a quarter of the total volume produced is exported across the globe.
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