|Authors: ||A.M. Klepacka, W.J. Florkowski|
|Keywords: ||consumer preferences, fruit import, deflation, revenue loss, compensation|
Poland has been a traditional exporter of fresh apples to Russia (and earlier the Soviet Union). Indeed in 2013, Poland exported 600,000 tons of apples to Russia, about one half of its total fresh apple exports.
Within the European Union, Poland has become the largest apple producer surpassing Italy, while in 2013 Poland was also the largest world apple exporter.
However, following the annexation of Crimea, the EU introduced embargo on selected exports to Russia, while Russia retaliated with its own set of sanctions.
This paper discusses the current embargo on apple exports from Poland to Russia in the context of the importance of Russian market for the expanding apple production.
The discussion describes the macroeconomic indicators and their relation to the unexpected and sudden increase of domestic supply and the change in apple prices for the domestic consumers.
Furthermore, the presentation includes the adopted attempts to compensate Polish apple producers by the EC for lost export markets.
Finally, efforts to find new export markets for Polish apples are illustrated with examples from North America, Africa and the Middle East.
The paper is primarily descriptive and supported by statistical data illustrating the development of apple production and exports prior to the introduction of embargo, changes in the food price level and the overall inflation, and effects on the agricultural balance of trade.
The unprecedented low apple prices on the domestic prices may have the positive effect on reversing the decline in per capita apple consumption observed in recent decades and the eroding position of fresh apples as the dominant fresh fruit.
Increased apple supply also led to the development of innovative products including apple cider and apple beverages earlier little known to Polish consumers.
The future of the Polish apple sector is at stake unless increasing demand increases lifts prices.
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