Apple Polyphenols Facing the shortage of raw materials
date:2016-10-03
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By Eva Zhang,Editor of Herbridge  Media

2015 annual apple planting area and yield summary

China is the world's most important apple producing country, apple production accounts for about 55% of total output. In 2015, acreage of the main growing areas increased or decreased, but not largely, and almost there is no impact on annual apple production. Data show that in 2015 China's total area of apple planting is 2.222 million hectares, Apple's total output is about 38.491 million tons. Although the spring of 2015 Apple prices suffered Waterloo, some farmers suffered heavy losses, greatly dampened the enthusiasm of fruit growers, some farmers fell their apple trees to switch to other fruit, apple acreage continued to shrink. But overall, in recent years, China's apple production is still showing sustained growth. According to statistics, the national apple production increased by8% -10%. The planting area of apple is mainly divided into four regions: the Bohai Sea region (Shandong, Liaoning, Hebei, Tianjin and Beijing), the Northwest Loess Plateau (Shaanxi, Gansu, Shanxi, Ningxia, Qinghai) , Yellow River old valley (Henan Jiangsu, Anhui),  and the output accounted for 44%, 40%, 13% separately, other regions accounted for 3%.

2016 apple harvest statistics and price forecast

According Herrbidge Media preliminary survey about the apple output in seven major apple producing provinces this year, as of now, compared with last year, four provinces get an increase: about 10% in Shaanxi, 15% in Gansu, 10% in Shanxi and 5% in Shandong; but there are three provinces getting decreased compared with last year: Hebei cut 15% -20%, Liaoning cut about 15%, Hebei cut about 10%. According to this analysis, China's 2016 apple production are almost the same with 2015, and is expected to 38.5 million tons.


APPChem told Herbridge MediaAccording to our purchasing experience, the amount that can be used for processing of apple polyphenol raw materials, accounted for about 1% of the total harvest of apple, and is expected to reach 40 million tons in 2016. Taking into account the actual procurement of raw materials in the process of the cost of the interference factors, the actual amount of apple raw materials will account for about 20% of the polyphenol raw material, that is, in 2016 can the amount that actually can be used for apple polyphenol production of apple raw materials is nearly 10 million tons. According to our forecast, the purchasing price of raw materials will be the same as last year, prices will remain at 800 yuan per ton. While the cost of raw materials per kilogram of apple polyphenols is about 400 yuan, almost the same as last year.

2015 apple polyphenols market inventory and price

    2015 apple polyphenols market inventory is not greater than 30 tons. It should be mentioned here that the raw material used to produce apple polyphenols is derived from the immature apple. Apple polyphenol extracted from mature apple pomace is not included, because the apple polyphenol extracted from ripe apples is very different from the polyphenol extracted from young fruit. Compared with the previous years, prices are almost stable with a slight downward trend, and the main reason is that the international market prefer to purchase apple polyphenols with lower pesticide residues, this made some providers lower prices in order to retain the market. Overall, in 2015 the price of apple polyphenols remained at around 550 yuan.

2016 apple polyphenols market inventory and price trends

So far in 2016, the apple polyphenol juice production is about 800 tons, which can be produced about 30 tons of apple polyphenols, and the market inventory is about 40-50 tons, the overall supply is smaller compared with last years, while the market demand is still growing, this will make the price of apple polyphenols go up slightly. It is obvious that when processing amount gets small and market demand keep growing, the price will go up.

2017 apple planting area and apple polyphenol price trend forecast

High yield for so many years, economic downturn in China and less demand for apple fruit will result in Apple's prices continuing to decline, the profit declining and the consequences will be that there are more fruit farmers cut down their trees, and the planting area is expected to decline in 2017, resulting in apple production will be reduced. As for apple polyphenols and the raw material, the market demand will keep increasing as usual, therefore, apple polyphenol manufacturers will consume the raw materials market stock to meet market demand growth, so apple polyphenol production in 2017 will continue to increase correspondingly. Taking into account of improved efficiency of raw materials processing enterprises, increased processing volume  in these years, the processing costs will be decreased, therefore, the price of apple polyphenols will be reduced.

Suggestions to the international buyers, such as how to adjust the corresponding budget

    The raw material used to produce apple polyphenol is apple's young fruit which is subject to seasonal restrictions, the procurement time keeps only a short period less than one month a year. For raw material buyers, purchasing should be prepared as soon as possible. Generally, it is better to determine the order quantity before April each year, and the sooner the lower price. Especially, for buyers with large orders, they should make the best preparation of storage and production, so as to improve efficiency and reduce costs. Once missed the best purchasing time of raw materials, that means higher price, poor quality raw materials, even no raw material.
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