Apples

Apple updates

Sentiment weakens on larger than expected crop.

While the season started off on a cautiously optimistic note, sentiment has since weakened due to the larger than expected crop compressing returns. Organic, some club varieties and Honeycrisp apples are the exception, with the latter positively impacted from a crop size roughly half of last year’s. There are increasing reports of orchards coming up for sale and/or being taken out of production throughout Washington. Many of these are older and/or low production, though it’s also occurring among those with main varieties such as Fuji and Gala. Demand for orchards has softened, and those with long-term inefficiencies and out-of-date varietals are experiencing the largest change in values. Multiple years of weak markets has also impacted succession planning, with younger/older generations hesitant to take/pass on unprofitable operations. While conditions are challenging, they have improved from last season and shipments to retailers are strong.

Pear prices are holding strong due to the very short, good quality crop and producers with sufficient supply, located primarily in Southern growing regions.

Profitability

December 11, 2024

Apple producers: Unprofitable - Bullish 12-month outlook 
Apple packers: Slightly Profitable - Neutral 12-month outlook 

Apple prices have increased from near historic lows. This trend should continue due to good quality fruit, a smaller Honeycrisp crop, strong export markets and lower production levels in other U.S. growing regions.

Apple packers will continue to benefit from high volume throughput with the larger than expected 2024-25 crop.

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