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China: Bad situation for sweet orange market likely to continue
The sweet orange market was already bad during the Spring Festival in 2017 and people were hoping for the market to recover after the festival. Looking at the current situation, however, this has not happened at all.
Recently picked fresh oranges
The Spring Festival market this year can be summarised as follows: the price in the production areas increases because traders buy voraciously when market prices keep rising. When fruit farmers are hesitant to sell, the market price crashes and fruit traders lose interest. Farmers then become alarmed and sell their harvest at dump prices. Production area prices drop, and fruit traders dare not replenish their stock. This mechanism is one of the main reasons for the collapse of the sweet orange market this year.
Recently plucked fresh oranges
2017 was the year in which Guangxi made the largest expansion in sweet orange plantations. The majority of sales came from new production areas. The expanded surface area of sugar orange plantations reached more than 100 thousand hectares.
Fruit farmers select oranges
The majority of new orchards from 2017 will only bear fruit in year or possibly two. 2018 promises to become a bumper harvest year. It is estimated that the Guangxi sugar orange production volume in 2018 will be twice the volume of 2017.
Fruit farmers carrying baskets of oranges with shoulder poles
The market demand for oranges increases after the weather turns warmer, and seasonal fruit starts to decrease. March is the time when Wo oranges and Murcott are best enjoyed. These high-quality, late-maturing oranges create their own demand as they are about to hit the market. This year, however, the price will naturally go down because plantation areas have increased and therefore supply has increased.
Publication date: 3/12/2018
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