Apricot Market Update 21.01.25

The raw material prices of apricots are currently on an upward trajectory, driven by increased demand from growers and traders who still hold stocks, particularly in light of Ramadan. This period of heightened demand typically signals the start of a bloom season. However, the apricot industry remains vulnerable to frost, a recurring issue that has occurred in 8 out of the last 10 years. If frost strikes again, it is highly likely that prices will surge dramatically.

On the export front, the outlook is strong, with apricot volumes approximately 30% higher than the previous year, suggesting robust global demand. This has set the stage for the entire crop to potentially sell out, further tightening supply. Despite this, a number of importers have refrained from covering their January needs, banking on the hope that a devaluation of the Turkish Lira might lower prices in USD terms.

In terms of broader economic policy, the Turkish government has maintained a tight grip on the movement of the Lira. This policy, coupled with a 30% increase in the minimum wage, has significantly impacted the export competitiveness of other sectors, such as vine fruit and textiles. However, apricots seem to be an exception, remaining relatively unaffected by these macroeconomic constraints. This resilience underscores the unique position of apricots in Turkey's export portfolio, driven by strong demand and limited global competition.