:. Food Industry News


China: Apple Production to Increase 15% in 2008; Concentrated Apple Juice Output to Crash

Source: US Government
27/11/2008

27 Nov, 2008 - China's apple production is forecast at 28.5 million MT in MY 2008, up 15 percent from the previous year, the result of a high year in the production cycle. Concentrated apple juice production is forecast at 600,000 MT in MY 2008, down 50 percent from the previous year, attributed both to large quantities of carry-over stock and weakening demand in the world market.

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 Industry sources believe that crushers held at least 300,000 MT of stocks at the end of MY 2007, as sky-rocketing prices limited the buying interest of the major world buyers. Apple exports are forecast at 870,000 MT in MY 2008, while CAJ exports are forecast at 700,000 MT in MY 2008, down 13 percent from the previous year, given expected lower demand from Europe and America.

China’s apple production is forecast at 28.5 million metric tons (MT) in marketing year 2008 (MY, July-June), up 15 percent from the revised figure for MY 2007, the result of a high year in the production cycle. Apple acreage in MY 2008 is forecast at 1.98 million hectares, an increase of only one percent from the previous year. Acreage expansion is expected to slow in the wake of falling market prices due to a bumper harvest this year.

Concentrated apple juice (CAJ) production is forecast at 600,000 MT in MY 2008, down 50 percent from the previous year, attributed both to large quantities of carry-over stock and weakening demand in the world market. Industry sources believe that crushers were still holding at least 300,000 MT of stocks at the end of MY 2007, as sky-rocketing prices set by
Chinese juice producers at the beginning of the previous season have limited the buying interest of the major world buyers, especially those in Europe.

China’s pear production is forecast at 13 million MT in MY 2008, an increase of only one percent over the revised estimate of 12.8 million MT in MY 2007, despite the fact that acreage decreased slightly. Grape production is forecast at seven million MT in MY 2008, up five percent from the previous year on increased acreage, which is forecast at 460,000
hectares in MY 2008. Production is also up as a result of better returns compared with other deciduous fruits.

Apple imports are forecast at 42,000 MT in MY 2008, up six percent from the revised estimate of 39,782 MT the previous year. Table grape imports are forecast at 52,000 MT in MY 2008, up 12 percent from the previous year, given strong demand for this fruit.

Apple exports are forecast at 870,000 MT in MY 2008, down 15 percent from the revised estimate in the previous year, as a result of reduced demand due to the worldwide economic slowdown. CAJ exports are forecast at 700,000 MT in MY 2008, down 13 percent from theprevious year, given expected lower demand from Europe and America. Pear exports are forecast at 450,000 MT in MY 2008, up seven percent from the previous year as world buyers, mainly in Asia, are showing a quite strong buying interest for Chinese pears.

China’s table grape exports are forecast at 72,000 MT in MY 2008, up more than 30 percent over the previous year, thanks to strong demand from neighboring countries in Asia.

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