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China: Apple market lacks stability

Chinese apples are the world's most cost-effective and the apple business seems to be very prosperous. So why are so many apple companies finding it difficult to operate, or are even shutting down? One of the reasons is the volatility of China's apple market. It is the largest in the world but there are huge business risks and the opportunities for profits are hard to find.

Moreover, the instability of the domestic market and the attractive market prices of imported apples are prominent factors which account for the weakness of the Chinese apple industry.

Apple industry insiders are looking for stability. However, they first have to stabilize the apple area and the output. They then need to create a stable mechanism, in particular regarding the role of trade associations and chambers of Commerce. They have to integrate supply lines, reduce costs and improve the efficiency to fundamentally nurture and support apple companies and grow the business in size and strength. The Chinese apple market needs to change from scattered outposts to a strong hub of corporate teams in order to maintain a stable supply in the domestic market and have a strong market competitiveness internationally.




Publication date: 2/28/2017


 


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