China: Fresh pear exports in grave danger

"The company was founded in 2003 and its located in Li county in Hebei. Our company unifies cultivation, processing, purchase, storage and distribution. We own a fresh pear cultivation ground of 100 hectares. 25% of the production is certified as organic, the other 75% has a GAP certification. The varieties we mainly cultivate are snow pears, crown pears, Mantian red pears, red Suxiang pears and New Asia pears (N° 7)," says Mr. Yang Jinghe, the assistant manager of Hebei Baifeng Agricultural Products Development. 

"In June last year, the hailstorms had a definite effect on the quality and the quantity of the pears. This year, if there is no extreme weather, we estimate that we will have a production of about 7000 tons. For export, the European import for snow pears has a residual pesticide minimum that has been set very low. But this adjustment hasn't really influenced us. That's mainly thanks to the fact that we ourselves have direct control over every segment of the cultivation and production. Compared to 2015, our exports to Europe have decreased by 10% in 2016, but that is mainly due to developments in the global economy."

"In the past few years, the export of Chinese fresh pears has polarised. In the high-end markets of Europe and the US, the competitive strength of Chinese pears has been somewhat reduced. Both in terms of price and quality, Chinese pears have to face the pressure of similar fruit varieties from other countries, like New Zealand and Argentina. As we create a stable niche, it is difficult to increase the exporting price or volumes in the high-end markets. On the other hand, the export volumes to neighbouring countries like Russia and Southeast Asia have gone up. But the price is rather low. As a result, exports of Chinese pears is increasing year by year, but the average price is not as we would want it to be."

"Apart from a constant increase of competition on the international market, the imbalance between supply and demand in China is also a main reason for the downward pricing trend. In the past few years, cultivators all over China have been enlarging their pear cultivation. This has caused a rapid increase of the supply on the market. Some of those pears were marked for export because they couldn't be sold in China anymore. Without a doubt, this has created pressure on the export market. Compared to 2015, the export price has dropped 10% in 2016. The overall export price in the industry has even gone down with 20%. It's hard to say how the price will evolve this year. The production volume is still increasing unrelentingly while the production cost is going up too. The eventual price trend will depend on the consumption behaviour on the market and macro-economic developments." 

"We want to establish a stable consumption community, increase the reputation of the enterprise label and give consumers a better understanding of the cultivation process. So we organise a sightseeing event in our own cultivation base at fixed periods. We also have events like a pear flowering festival and a harvesting festival. Apart from pears, we also possess 66 hectares of Chinese yam cultivation ground. The Chinese yam we cultivate is sold on the markets of Beijing, Shanghai, Nanjing, Canton and other big cities as 'Bangcanma Chinese Yam'. Li county is the origin of the Chinese yam and it has become one of the 10 Chinese regional products that are recognised both by China and the EU. Chinese yams have a very high nutritional value. They are good for people of all ages and they have an anti-ageing effect."

Yang Jinghe (Assistant Manager)
Hebei Baifeng Agricultural Products Development Co., Ltd.
Address: Weijiazuo farming field, Baiche village, Li county, Baoding city, Hebei province
Website: www.hbbaifeng.com
Mobile phone: +86 136 2322 6198 

Telephone: +86 312 6128 000
Email: baifengfruit@126.com