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China: Export of apples to Indonesia has started
What the influence of contracted exports to Indonesia on current conditions in the domestic apple market will be is still an open question? When it comes to exports, everyone thinks of small fruit, with a diameter of 65 mm or 70 mm, that is suitable for export. The sales volume of small fruit will definitely increase when Indonesia opens customs. This will alleviate the pressure that has been building in the domestic apple market.
The prices in Indonesia, however, are 0.2 yuan [0.03 USD] lower than in other countries for fruit of the same standard and same quality. Furthermore, with contracted export it is difficult to deliver third-grade fruit. Third-grade fruit is overstocked in the week before New Year and pressure on the market is still severe. In addition to this, transport became more difficult as a result of snowfall throughout the country. The difficulties with transport increased the overall cost of apples and hindered deliveries. Overall, the opening of export to Indonesia will certainly create a pull on the market, but changes on the apple market will not be great, whether it concerns prices or volumes.
The influence of contracted export to Indonesia will not be great, even after the Spring Festival. There is an influence, but it is small. Everybody is waiting for a large export country like India to open its borders, but at present there seems to be no signs of this.
Source: Agricultural Products Contract Delivery Online
Publication date: 2/13/2018
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