Bleak retail conditions force Chinese vineyard owners to seek overseas purchasers

"The overall market price of grapes in China is about 20% lower than it was last year. Retail is far from smooth. The purchase price in some production areas has fallen below the cost price. Vineyard owners cannot help but operate at a loss and try to keep damage to a minimum." This is according to Liang Haoran, a Henan Nanyang vineyard owner and grape trader.

"There are three main reasons for these bleak retail conditions: first, the surface area devoted to grape plantations has greatly increased in the last few years. The expansion rate in one of the major production areas in Henan reached about 30% per year in the last two years. Increased supply has led to decreased prices. Second, the Henan vineyards are relatively small, the grapes mature late, and the transport cost is high. Third, vineyard owners are behind on innovations in product variety, which has led to poor product quality. It is difficult to get consumers enthusiastic about these grapes."

"We own 67 hectares of vineyards in Nanyang, Henan. Our main product varieties are Jufeng [Large Mountain Peak] and Xiahei [Summer Black]. Our retail season begins every year in the middle of July and lasts until the middle of September. We sell our grapes through wholesale markets, supermarkets, and fruit stores in first and second tier cities throughout China. This year, however, the market is depressed and retail conditions are bleak. We are actively looking for overseas purchasing traders and hope to export our grapes to Southeast Asia and Russia."