Crunch time for orchardists as big apple crop drives down juice price

Peter Forsyth, manager of Batlow Premium Juices in south-west New South Wales, said it was unlikely prices would shift dramatically, even though some crops in the state were hit by hail.

He is currently negotiating 12 month contracts with buyers and hopes to have them locked in by May.

"We're starting this year at around the $160 a tonne level," he said.

Audio: Apple juice processor Peter Forsyth speaks about the drop in the juice market (ABC Rural)

Last year, a heatwave in some states put pressure on apple supplies and triggered a spike in juice prices.

Peter Forsyth, manager of Batlow Premium Juices in south-west New South Wales, said it was unlikely prices would shift dramatically, even though some crops in the state were hit by hail.

He is currently negotiating 12 month contracts with buyers and hopes to have them locked in by May.

"We're starting this year at around the $160 a tonne level," he said.

"Last year we started at around $220 and we went up from there.

"But this year, I suspect that the $160 a tonne is going south, not north."

Mr Forsyth's small processing plant takes around 90 per cent of the region's second grade fruit and the other 10 per cent is sourced from other states.

The apples are turned into pasteurised and unpasteurised juice.

The plant will start processing fruit in the next two to three weeks.

Source: ABC Rural   Laurissa Smith   March 26th 2015