This is the time of year when citrus products from the southern hemisphere sell well in the Chinese market. Oranges from South Africa are particularly popular at this time. Manager Wang of the Green Belt company shared his insights into the current market conditions and the future prospects.
South African oranges
"The volume of oranges exported from South Africa to the Chinese market has shown continuous growth in recent years. The South African oranges are quite popular with Chinese consumers. The market price of South African Lona oranges is quite high around 190-220 yuan [26.70-30.91 USD] per box of 15 kg.
This year, however, the market conditions in the Chinese import market were less than ideal. Chinese importers faced great risks, but suppliers managed to keep the price level high. With the import price fixed, traders run the risk of losing money. The market has slightly improved in recent days, but the price is still below cost price. The mainstream market price of imported oranges is around 130-150 yuan [18.27-21.05 USD] per box of 15 kg. Only a few boxes sell for more than 160 yuan [22.48 USD]. The mainstream import price for Lona oranges is 16-17 USD per box (CIF price). We think that a market price of 15 USD would still be reasonable."
Manager Wang further explained that, "sales of South African oranges are currently below average. We have to pay attention to Egyptian oranges and Spanish oranges. Their production season is longer this year in comparison with last year. Their production volume is still large, even this late in the season, and their product quality is not bad. Furthermore, the weather may also play a factor in the disappointing performance of South African oranges. Some of the oranges were not completely ripe. The color of the oranges also did not change properly but remains weak. Other oranges were not sweet enough."
South African oranges
"The import volume of South African grapefruit suddenly expanded in comparison with last year. The supply volume in the first few weeks of the season was low and the market price was ideal. The price of South African grapefruit reached 340-350 yuan [47.78-49.18 USD] per box of 17 kg. The price subsequently dropped to 120-130 yuan [16.86-18.27 USD] per box of 17 kg. Many traders were unable to sell all their stock in two months, but later in the season the price slightly increased again to around 200 yuan [28.10 USD] per box of 17 kg."
South African grapefruit
"The price of South African tangerines was quite high early in the season. The price reached 200 yuan [28.10 USD] and above. However, the price in the middle of the season caused people to lose hope. Some tangerines struggled with product quality. The price dropped to around 40-90 yuan [5.62-12.65 USD]. The temperature management of South African tangerines was also problematic. The tangerines were kept at a temperature around 0.6 degrees Celsius for a period of 24 days. The product quality of many tangerines suffered. This increased the risk for importers and exporters alike. In comparison, the Australian tangerines were kept at temperatures between 1 and 2.1 degrees Celsius. Traders are better able to guarantee product quality under those circumstances."
For more information:
Mike Wang - Manager
Guangzhou Green Belt Food Co., Ltd.
Tel.: +86 139 2507 399
E-mail: mw@altaifresh.com