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China: Shrinking Indonesian market brings down export price of apples

David Wang, CEO of Haoyuan Agriculture Products Limited said:" Since 1st of June this year, Indonesia has stopped its apple export to China. For the second half of 2017, the Indonesian government has adjusted the import quota by cutting it by 80% of that from the first half of 2017. In the meantime, there is no import quota set for pears."

Quality apples from Haoyuan Agriculture Products Limited

"This year the market demand for apples in China has been relatively low and the demand in overseas markets was also quite limited. Hence the demand was mostly filled, leaving a very small space for imported apples from abroad. The slow sales has brought down the export prices of apples and pushed any company relying on exporting apples to Southeastern Asia into a very awkward position."

Labeled pears

"Since India and Indonesia are our major export markets, we are experienicing a lot of pressure in the current situation. The suddenly changed policy was beyond our expectation and our stock for these two markets is now sitting in the warehouse and waiting for the orders from other markets such as Europe, but there are not a lot of clients there. Currently, we don't have a lot of products that meet the EU food safety standards, so the export volume to the EU is quite small."

Freshly-picked apples

"Now the Fuji apples are at their final stage of shelf life, and many companies are offering great discounts to get rid of the stock. Some even send their stock to their overseas clients without a fixed sales price, and charge the clients based on the final market price. At the same time their clients charge commissions for the sales volume and this results in the increasingly lower prices and a great loss to apple exporters."

Pears ready for export

"We believe that the trade between China and Indonesia will not stop, but due to political factors and a trade deficit, Indonesia has enforced strict terms on imported products from China. Currently, many companies are being extra careful with their apples exported to Indonesia. For us, both India and Indonesia are important markets, so we won't give it up, but how things will go eventually still depends on the efforts of the two governments."

David Wang CEO 
Haoyuan Agriculture Products Limited
Telephone: +86 531 8793 9199

Publication date: 9/5/2017


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