Conditions in the Chinese apple market are less than ideal right now. There was a shortage of apples in storage around this time last year. That shortage pushed the price up to a level that satisfied apple traders. This year, however, the conditions are very different. The market suffered from an overabundance of supply, which put pressure on the price.
Mr. Zhao of Fortune Land International recently shared his analysis of current conditions in the Chinese apple market: "The apple production volume declined in 2018. Many people made a lot of money then. The apple production volume in 2019 was very large. The people who made enormous profits in 2018 eagerly purchased and stored large volumes of apples during the harvest season. This increased the cost price of storage. However, when the new sales season started, the domestic and international sales volumes were disappointing. The outbreak of the corona virus also has had a severe impact on the Chinese apple market. Many traders with apples in refrigerated storage have not found any sales channels to offload their stock. The apple market is slow at the moment. Furthermore, the overall product quality of apples is not that great this year. Although there are still some top-quality apples."
In addition to domestic sales, large volumes of Chinese apples are annually exported to other countries. The current COVID-19 epidemic, however, has a severe impact on the export market.
According to Mr. Zhao: "We mainly export apples to Indonesia, the Philippines, Malaysia, Thailand, Singapore, and Bangladesh. However, current market conditions are not great. Distribution channels are clear, but sales are difficult. For example, Indonesia has trade quotas and the import volume in other markets is not large either. India still does not import apples and pears from China, which does nothing to relieve the pressure on the Chinese apple market. Last year, teams from India came to inspect Chinese apple orchards. However, because of political reasons, the Indian government still did not open their market for Chinese apples. The sales speed is very low. Under normal conditions we export 20-30 shipping containers per week. At the moment we only export 7 or 8 shipping containers per week. I believe that the apple price may collapse."
In addition to apples, Mr. Zhao also exports muskmelons, pears, grapes, plums, lemons, garlic, ginger, carrots, onions, and tangerines. "Our red grapes have not yet entered the market. The new harvest of red grapes from Yunnan vineyards will enter the market in late June at the earliest. The grapes from Shaanxi will then follow in August. The last grapes to enter the market are grapes from Dunhuang and Xinjiang in September. The new harvest of pears enters the market in May. Conditions in the pear market are quite good this year. The production volume is quite large, but sales are smooth. There is still supply left, but very little. The reserves of Ya pears in particular are nearing their limit. We have plenty of stock and the product quality is high. We hope to find clients across the globe willing to work together with us."
For more information:
Zhao
Fortune Land International
Tel.: +86 18653129057
WhatsApp: +86 18653129057
WeChat: +86 18653129057