Is the gala too cheap - a psychological barrier or a hard economy?

Is the gala too cheap - a psychological barrier or a hard economy?

We have been trading Gala in our country since the end of August. It must be honestly admitted that the 1.80 - 2.00 PLN / kg range was a good price, but just at the end of August, during the harvest, without storage costs. For the same rates, groups and companies have been buying this variety for 17 weeks. Time flies, cold stores work, some fruit breaks down, and the price remains unchanged. From the manufacturer's point of view at this time of year, a price of at least PLN 2.30 - 2.50 / kg would be satisfactory. But what about the market, including the global one?

In my opinion, prices are somehow influenced by the fact that Gala is not as well known and liked among Polish consumers as in other parts of the world. The lion's share of domestic trade is Szampion, Ligol and Jonagored. But today's apple trade is one more and more alive global organism. So how is it in the world?

Prices in Italy are similar. As a friend from South Tyrol writes to me. Currently, local producers receive around 0.45 € / kg Gala from 65 to 73 mm. Maximum € 0.50 / kg for larger apples. How does this relate to the prices of "ready" apples?

This is a screen from weekly prices of fruit and vegetables in Germany. It is performed by the federal Ministry of Agriculture. The unsorted Royal Gala, from 3.93 to 4.36 PLN / kg. The Italian Gala in the caliber 70 - 75 mm is 4.49 PLN / kg. Whereas 75 - 80 is 5.05 PLN / kg. Prices are impressive, but they are the most demanding market in terms of quality. But this shows what rates you can get for a striped Gala, and that there is room for brokers' price increases. They earn the most. The margins of Italian brokers are also impressive.

Unfortunately, our exporters do not achieve such high prices. This does not mean, however, that somewhere in the world Gala cannot be sold better, i.e. more expensive. The Polish-Polish competition and mutual destruction of Polish groups and exporters on foreign markets are also significant here. The main weapon is the price.

Lower apple harvest in Poland and Europe, translate into slightly higher prices. Polish fruit growers, after spring frosts, expected much higher prices. However, in the west, the losses were not as great as in Poland. In addition, global competition is not asleep. It is difficult to answer the question in the title clearly and unfortunately I won't do it. Currently, there is only 10 groszy of difference between the highest bid of the Ligola and the lowest bid of the Royal Gala. But this is a curiosity and specificity of this season.

Royal Gala is a kind of brand under which we sell a few or a dozen or so sports of this variety. Most wanted by foreign recipients. Most often sent and bought in the world trade. Unfortunately, its current price does not impress fruit growers. It remains almost unchanged for several weeks. Do I see buyers or a global trade issue that will not "allow" growth? Fruit growers almost unanimously say that the price is too low! (as for this moment of the season) We will not win with global prices, on the other hand, the data show that there is room for growth. The harvest in the southern hemisphere will be important. There are many variables on this issue, and the clear answer is extremely difficult.

So far, no buyer has exceeded the "psychological" barrier of PLN 2.00 / kg. At the end of January, harvest in the southern hemisphere will have a decisive impact on Gala prices. The exporters there will sell fresh apples, so, unfortunately at the start, they are somewhat winning with the European ones. Unfortunately, we will not "jump on" the global market. Because no one will buy the same product more expensive than from the competition. On the other hand, raw data show that there are options for higher prices. But to do this, we must play as one industry as a goal