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Chinese apple supply at risk amid hailstorms in Shaanxi Province

October 13, 2021

1 mins read

 

The September average price of Chinese apples rose by 1.7% m-o-m to USD 1,115/MT amid extreme weather conditions in the northwest of China. China is the world’s largest producer of apples, accounting for almost half of global production. In late September, Fuxian and Luochuan, located in the north of Shaanxi Province, experienced adverse weather conditions. Heavy hailstorms resulted in severe flooding, impacting the quality of produce and reduced the harvested volume in China’s main apple-producing region.

The price in 2021 (till September) has been relatively stable over the previous year amid a steady apple supply; however, the price is set to increase following the current conditions. The full extent of the hailstorm impact is not yet evident on production volume; however, according to market participants, it is estimated that apple production in the 2020/21 MY could drop by around 20% y-o-y in Luochuan. In addition, the USDA estimated a lower (y-o-y) apple production in China, a reduction of 1.9 million tonnes to 40.5 million in the 2020/21 MY, due to the spring frosts earlier this year, which affected the flowering. The combined impact of the spring frosts with the hailstorms will likely damage supply further, thus supporting higher prices. As a result, Chinese apple prices are projected to continue an upward trend for the remainder of the year.

China / September 2021 / Precipitation (% change)

Alice Witchalls

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