May 11 2007, 10:55

Fresh apples of 2006 harvest will enter Polish, Ukrainian and Russian markets in 2008

A broad discussion is going on in Poland regarding the possible impact of disastrous early May frosts to the production and prices of apples, pears, sweet and sour cherries, strawberry and many other vegetables, fruits and berries. The Ministry of Economy of Poland has been already reconsidering the inflation forecast in view of its possible growth; farmers ask the state for assistance to overcome the crisis, because many of them won't be able even to pay loans back.

At the present moment the fears about 90% apple harvest losses in some regions are close to be confirmed. The farmers say that the apple trees of Idared variety have suffered the most, and Gloster and Golden Delicious have suffered the least. According to information provided by the specialists of ""Agrooglyad: Vegetables and Fruits"", not more than 3% of Polish orchards are protected with the modern frost-protection systems, so that the absolute majority of farmers failed to save harvest. However, some farmers invested significant funds into these systems; they say to save 70% and more of apple harvest in those regions where other producers lost 90% of fruits.

The frost results were fast to come out - since the previous week the wholesale price growth for apples has exceeded 25%; the supply of quality apples has dramatically decreased. To the opinion of Andriy Yarmak, the Manager of "Agrooglyad: Vegetables and Fruits" project, the supply of quality apples will further decline on Polish market. The thing is, the owners of the quality CA storages would better store apples as long as possible in this situation.

It is clear right now that Poland will hardly have apples to satisfy inner demand; at the same time, a part of apple harvest should be exported in order not to lose sales markets. Most probably, the prices for apples will be formed on the price level recorded in the EU countries. In this case the apple prices will be almost thrice as high during the harvesting season in Poland, if compared to the previous season. Even more serious price growth is possible in the beginning of 2008. So the following situation may take place - a part of apples harvested in 2006 and stored in CA storages will enter Polish, Ukrainian and Russian market only in the beginning of 2008.