"China's two largest apple production areas in Shaanxi and Gansu suffered from extreme weather conditions this year. The overall apple production volume decreased by more than 50%. The apples 'lucky enough to survive' still suffered from the extreme weather conditions and overall product quality decreased as well." This is according to Wei Runyuan of Xianyang Green Origin Agricultural Trade Co., Ltd.
Apples
"The overall volume of commercial-grade apples was much smaller than in previous years. This immediately raised the retail price of apples in this production season. The actual price increase of course depends on differences in product variety and production area, but generally speaking, the price of apples increased by at least 40% in comparison with the same period in the previous year. The price of some apple varieties even increased by 100%, such as the Qinguan apples from Shaanxi."
Apple orchard
Apples
"People respond in different ways to these circumstances. On the one hand, apple farmers look at supply shortage in the market with hope of even higher prices for their own apples. The price has been increasing since the start of this production season and apple farmers grudgingly sell their apples, hoping to wait as long as possible and sell at the highest possible price. Some farmers temporarily stop sales, others simply leave the apples on the tree while they wait for the optimum price before they begin to harvest. On the other hand, the response of overseas buyers has been very different from the response of domestic buyers."
Apples
Climate-controlled warehouse
"As for the domestic apple market, we are still in the middle of the apple production season, so the market volume is still not very large. Sales are smooth and there is often a supply shortage. Later, however, as market supply gradually increases and the price continues to rise, then the question is whether consumers are willing to accept high apple prices. This is still difficult to predict. As for the export market, there are many apple production areas around the globe and overseas buyers look at the high apple prices in China with caution. Some of them have already shifted their attention to other countries. Based on these conditions we expect Chinese apple export to decrease rather than increase this year."
Apples
"Our apples come from production areas in Xianyang City and Yan'an City in Shaanxi Province, as well as Qingyang City in Gansu Province. We mainly supply late-season apple varieties such as Fuji, Qinguan, and early-season apple varieties such as Gala and Jinguan. Our supply season begins in September and continues into July of the subsequent year. We purchase our apples through the following three channels: first, we cooperate with local agricultural cooperations; second, we cooperate with modern agricultural businesses; and third, we purchase directly from apple farmers in the area."
"As for our retail channels. In China we mainly sell our apples in wholesale markets in provincial capitals. At the same time, we link up with overseas buyers and cooperate with domestic trading companies. Our apples are also exported to Southeast Asia and the Middle East."
Contact person: Wei Runyuan
Company name: Xianyang Lvyuan Agricultural Trade Co., Ltd.
Telephone number: +86 186 2845 5102
E-mail address: 422169939@qq.com