The loquat is a popular fruit in Asia, but the fruit is not well known in other countries. One company began to cultivate the loquat in Australia in 2007. Oz Diamond Fresh Pty., Ltd. took over control of the plantation in 2017 and began to expand the Australian market share of the loquat. Furthermore, the company expanded the overall production volume and exported part of the production volume to Asia.
As Miu explained: "The loquat is not a very well-known fruit in the Australian market but the industry is growing in response to interest from Asian consumers. They are more familiar with the loquat and better understand if the fruit is ripe or not. These days the loquat has become a fruit with market potential as more and more people become familiar with the unique flavor of this fruit. We can clearly see market demand for loquats increase every year. In many circumstances the supply simply does not satisfy demand."
According to Miu, the overall supply volume needs to expand every year in order to better satisfy market demand. They are developing and expanding their loquat orchard precisely for this reason. However, this year the weather conditions were extreme and the weather became dry early in the production season. The overall loquat production volume slightly declined. This also affected the price of loquats. "The loquat production volume is around 25 tons this year. New South Wales suffered the worst drought in 20 years, so the overall production volume declined. The price subsequently increased because Australian loquat supply simply can not satisfy market demand, but also because we continue to improve our packaging methods every year. At the same time, a growing number of consumers becomes familiar with our products and our brands."
"The price does not fluctuate at all from the beginning of the production season until the end. Only when the production season comes to an end does the price go up. Yungang loquat are packaged in 2 kg bags that are suitable for households or as gifts for relations. When the price is at its highest, a 2 kg bag of Yungang loquat costs around 115 Australian dollars [77.68 USD]. We do not consider competition in the loquat market fierce. We enjoy a position of market dominance in Australia. Although the market position of loquat is not great when the price is considered (product price is high and cost price is difficult to reduce), but market demand is high and we still have a lot of room to continue the development of our market share."
The Oz Diamond orchard occupies 54 hectares and can supply loquat from July until the end of October. The company normally exports loquat to Singapore and Hong Kong, but because the production volume declined and local demand is high, the company did not export loquat this year. "We hope to be able to expand the surface area of our orchard and strengthen our cooperation with global distributors. We hope to improve the quality of Yungang loquats, find more global suppliers, and bring our delicious fruit to more customers across the globe. The loquat is an extremely healthy fruit and we are considering producing processed loquat products, such as traditional herbal remedies with loquat," concluded Miu.
For more information:
Eric Li
Oz Diamond Fresh Pty., Ltd.
Tel.: +61 425425699
E-mail: eric@ozdiamondfresh.com.au