China: Increase in kiwifruit production, future sales uncertain

The stock increases and sales look bad
"At this point, almost all kiwifruit is harvested, but 80% to 90% have yet to go on the market. Instead they are stocked. As the preservation technology of kiwifruit improves, Zhouzhi has built a lot of cold storehouses in the last few years. But the problem is that the growth of the cold storage surface already outstrips the growth speed of kiwifruit production itself. That's why many shops that are in possession of cold storehouses have bought the kiwifruit and stored them. The buying price in the production area is rising, so the market price rises accordingly. The actual volume for contracts is very limited though and the profit margin is pretty thin."

"We worry that many companies are now building kiwifruit stocks. If they exceed the market demand, the fruit price may collapse. It would be a disaster for the future of the market."


The production volume of kiwifruit in China is steadily growing

More expensive than last year, but slower sales
"Up until now, the kiwi price this year is higher than last year. The Cuixiang variety, for instance, had a maximum bulk price at the production region of about 6 RMB. This year it already exceeds 8 RMB. Kiwifruit passes through several layers of the market and transport and storage costs also have to be added. So if the situation remains like this, the end consumer will pay more than 10 RMB."

"Compared to last year, the overall economic environment isn't so good this year. The consumption capacity of the market is more exhausted. If the China-produced kiwifruit cost 10 RMB, consumers will switch to other fruits or buy imported fruit instead. The Cuixiang variety may be very tasty, but we fear that the high price will harm sales."




Fierce kiwifruit purchases 

Xi'an Chuanyuan Agricultural Technology
"Xi'an Chuanyuan Agricultural Technology is located in Zhouzhi in Xi'an. The company organises a production and sales cooperative with local farmers. It mainly promotes Cuixiang, Yuxiang, Huayou and Yate kiwifruit. By itself, the company can supply a volume of 100 tons. When adding the input of the other farmers, the total supply volume reaches up to 300 tons."

The cooperative orchard in which Xi'an Chuanyuan Agricultural Technology participates


Quality is excellent this year

"With regard to the current situation, we are inclined to maintaining a normal sales speed. We focus on quality and taste. The stock may be sold at even higher prices, but the risk is very big for farmers in small cooperatives. So at this moment we still put the sales emphasis on fresh kiwifruit, and not on stored fruits. That way the consumers have the chance to eat fresh Zhouzhi kiwifruit. It may prove to be more helpful for sales in the following years." 

Mr. Zhou

Telephone: +86 137 7243 5669

Email: jjzhou28@sina.cn