Chinese pomelo suppliers losing interest in export markets

Denimpex started their first arrival of pomelos from China under their own brand Dinosaur this week. Last week one of the gentlemen was in Xiamen/Pinghe to view the situation there and to visit various storehouses Denimpex has been working with since 2000.
"The quality and volume look good, but the local market has been a lot better than the export market over the last two seasons, so the companies who were specialised on the export market have lost some of their interest and want to focus on the local market as well," says Danny Deen.

"The local market mainly buys large sizes and there are a lot less of them this season. Last season there were around 5,000 containers sent to Europe, of which a total of 23 containers exceeded MRL. These pomelos were from a different area than the main area. The MRL checks are under control," says Danny. "Dinosaur packagers meet all of the demands and BSCI audit summary conditions, which is a guarantee for food safety of all pomelos packaged under this brand. There is also a quality controller in the area throughout the season who leads all export and analysis' for Denimpex. The importer also carries out a lot of cross trade with pomelos for other destinations in the EU."

Garlic
During the visit last week there was also a survey carried out of the garlic situation in China. It turns out that the stocks have gone down by 23% over the last two years and now that the planting season starts this week and more area is reserved for garlic, the percentage will only rise. "The quality is generally better than that of last season and the domestic demand is also increasing, so we look towards the coming garlic season with optimism."

Ginger
"The global ginger situation clearly shows a shortage, as simply all production supply countries have been competed to death by very low prices from China over the last decade. Now all production countries have hardly any ginger left, the prices in China have gone up so much as the demand there is larger than the quantity still available," says Danny.

"The prices will only go up over the next few weeks when the new planting for next season takes place and the demands of the local market just increase. I saw myself in Qingdao that the most expensive product on the fruit and vegetable section was ginger. And this ginger was certainly not that of the export quality coming to Europe," continues Joey. "We believe the prices will go up so much that there will simply be no more ginger supply at some point in the next three months and the demand for ginger form the EU will only increase."

For more information:
Danny Deen
Denimpex
Sint Antoniesbreestraat 10
1011 HB Amsterdam – Holland
Phone: 0031(0)206246390
Danny@denimpex.nl
www.denimpex.nl