Apple growers unhappy with processing prices

Despite of the fact that the apple production in Poland may be lower this year comparing to 2004, the price on apples for processing into apple concentrate is decreasing. Earlier this commodity cost even USD 0.16/kg, today the price dropped down to USD 0.09-0.1/kg. The producers think that the processing enterprises are trying to decrease prices deliberately, at the same time the world prices on apple concentrate are still rather high.

We'll remind that Poland provides 30% of the total production of apple concentrate in the EU countries. However, the competition on this market has become strained during the recent years. Chinese producers promote aggressively their cheap apple concentrate on the EU market and even supply the commodity to some Polish producers of fruit juices.

Ukraine also expands its presence on the European market of apple concentrate despite of the apple orchards' acreage decrease. Ukrainian processors are paying USD 0.05-0.09/kg for apple raw materials, so that the final product is enough competitive.

Polish farmers are threatening the processors by strike if the concentrate producers do not increase the purchase price. At the same moment, some of Ukrainian enterprises - apple concentrate producers have to suspend temporary the purchase of apples for processing because of the excessive volumes available.

(Source: FreshPlaza)

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