There were ups and downs in the Chinese citrus industry in 2019, but looking at the overall conditions, the worries outweighed the positive developments. Market conditions were quite good for early-season Wenzhou tangerines, Navel oranges, and Orri mandarins, as well as top-quality, early-season Shatang tangerines, kumquats, top-quality Sha Tin pomelo, and Gui No. 1 pomelo. Market conditions were less than ideal for most Shatang tangerines, Gong tangerines, and the honey pomelo that entered the market after National Day [1 October, 2019]. These fruits continued their poor market trend from 2017 and 2018.
The weather was often rainy and cloudy in the first half of last year. Drought struck in the second half of the year. Temperatures were too high during the period that the fruit ripened, and the temperature difference between night and day was too small. The suitable lower temperatures did not last long enough to stimulate the ripening process. The ratio of commercially suitable fruit was relatively low. Shatang tangerines took a long time to turn the right color, and their product quality declined. The Shatang tangerines from Guangdong and the west, south, and center of Guangxi ripened at the same time as Shatang tangerines from the north of Guangxi, and all of them entered the market at the same time. The overall production volume was excessive and the price dropped. The pressure on Shatang tangerine sales rapidly increased, but consumers did not buy more tangerines than usual. This is one of the main reasons that the price of Shatang tangerines remained low.
Some of the problems in the citrus industry are structural, and they will continue to create difficulties in 2020. One of the main problems is the relatively small surface area devoted to early-season and late-season citrus fruit. The production volume is small and the variety limited. For example, if early-season Wenzhou tangerines, crisp honey kumquats, and Xia oranges could guarantee product quality, then their price would remain high.
The market prospects of Shatang tangerines and Orri mandarins are less optimistic. The orchards are not yet operating at full capacity, which means the production volume will continue to grow. This will put even more pressure on the sales of Shatang tangerines and Orri mandarins. Apart from this, one major influence on sales is the weather. If the weather turns bad, then the sales suffer.
Source: ncw365.com