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Market price thaws

Honey Pomelo region produces 25% less

"The new honey pomelo season started two weeks ago and is predicted to last until December. Compared to last season, the main region honey pomelo production will be down 25%. This mainly has to do with two factors. First of all, the weather conditions aren't optimal. Secondly, the production was very high last season, which influenced the amount of fruit the trees will bear this year," says Mr. Huang Shengjin, Chairman of the Board of Sanlv Fruit and Vegetables in Pinghe county. 

Thawing prices
"The price of the pomelos in Heping is relatively stable and a bit higher than last year. In September, at the start of the season, only wild pomelos in low elevation regions were entering the ripening season. The market price was pretty high. It is expected that in October, as the large bulk of honey pomelos go on sale, the price will go down. In general, the Chinese honey pomelo market is only moderate this year due to the lower production. But it is still better than last year."





Difficulties exporting to Europe
"Compared to the domestic market, the export market isn't as good as people expected. This is especially true for exports to the European market. Over the past few years, the Pinghe honey pomelos have been very popular in Europe - prices and volumes were very satisfying. But recently European consumers have failed to understand the fundamental differences in quality of the pomelos. More and more, other Chinese companies export cheap pomelos to the European market. We face a fierce price competition because of it. Especially this year, the fixed buying price is even lower than the production cost of the pomelos. For a company that focuses on high quality, that pricing pressure makes it difficult to enter the European market. In comparison, the export volumes to the Russian and Kazakhstan markets have increased. That's because we entered these markets many years ago, so we have a stable base of clients. They understand that our high quality honey pomelos are different from the rest and worth their price. All together, the export volume has remained stable compared to last year."

"Of course, when we were confronted with the situation in Europe, we didn't just leave it at that. I believe that the main reason for the bad sales is that European consumers don't know our honey pomelos well enough. The quality difference is indistinguishable from the outside. In order to penetrate the market further, we have recently registered a European brand: Sanlv. The products are linked directly with the local supermarkets and end users, so they get to know our brand. We focus on our original high value honey pomelos. Moreover, we are actively joining all sorts of international fruit and vegetable exhibitions and we have a close collaboration with the fruit and vegetable media. I still have faith that our honey pomelos will succeed on the European market."

"We are a leading fruit and vegetable enterprise with much valuable experience in the trade. We have an extensive cultivation base for honey pomelos in Pinghe. The main products we engage in are red pomelo, yellow pomelo and white pomelo. For our honey pomelos, about 30% is shipped through Xiamen and Hong Kong to be sold to Europe, Russia, Tajikistan and other countries. The other 70% is sold in China - 95% in shops and 5% online. We mostly sell to Chengdu, Hangzhou, Zhengzhou and the first-tier cities of Beijing, Shanghai, Canton and others. 

"For a long time now, we have struggled. We have worked hard to expand our brand by finding new clients to work with. On October 17, we will hold a honey pomelo festival at the original production and export base of Pinghe. We will hold an inauguration ceremony for our new factory. We welcome everyone from all over the world to pay us a visit. 

Pinghe Sanlv Fruit and Vegetables Co., Ltd.
www.redpomelo.com
Contact person: Chairman of the board, Huang Shengjin
Telephone: +86 136 0600 6131
Email: 416099113@qq.com

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