Apples have always been a subject of great concern. In 2016, China was the main exporter of apples in the world. In 2017, the number of apples exported from China decreased.
Shaanxi used to be the largest apple producing province in China. However, from the beginning of 2016, Shaanxi apple production has shown negative growth for the first time. The market faced an oversupply of apples. There are different factors that have led to this situation, such as the low income of apple growers and a need for changing old trees for new ones.
Apple cultivation area
Over the past few years, the apple market has experienced extreme price fluctuations and plenty of difficulties. Only a year ago, the prices of apples became stable and reasonable. Since all the importing countries were less developed than China, profit from export wasn't high.
Apple processing area
Here are five reasons why the export of apples is getting more complicated.
1. Chinese currency revaluation. The Yuan is getting more expensive, which makes export less profitable;
2. The price of cardboard boxes increased by 50%;
3. Labor costs increase year by year;
4. India, the largest importer, stopped importing Chinese apples last May;
5. A concern that, because of a requirement for additional phyto-sanitary certificates, Chinese apple exports might be suspended at anytime.
Actually, the proportion of apples that are exported is not as large, when compared to the domestic market, but because of the effect this risk has on human psychology, everyone went into a panic and that alone is a destabilizing force for the market.
Source: iFresh