Domestic sales are gradually recovering as China brings the spread of the corona virus under control. The fruit import trade is warming up again as well. The overall import volume of fruit is gradually growing. However, outside of China many countries are still affected by the COVID-19 pandemic, which has a serious impact on import trade.
Mr. Zhang of Shanghai Sango Fruit recently shared his analysis of current market conditions for imported oranges from the USA:
"We are a specialized trade company with expertise in the import of high-quality fruit. We officially opened the US orange season this year when our first shipping container with imported Navelate oranges arrived in the middle of March. The production season began relatively late in comparison with last year. This is mainly because domestic oranges left the market later than usual. All in all, the overall market conditions of US oranges are not that bad. The Navelate orange in particular received a warm welcome. Chinese consumers greatly enjoy this new US orange variety. The market conditions of domestic oranges therefore have only a limited impact on the sales conditions of our import oranges. Furthermore, there are different consumer groups and they have varied requirements for their fruit, which is another reason why domestic oranges do not compete with import oranges."
When asked about the impact of two months of coronavirus conditions on the Chinese market, Mr. Zhang explained:
"Looking at the overall conditions of oranges imported from the US, we can see that the volume declined. The development of the Chinese economy does not look good. The prices of many products dropped significantly. Furthermore, the global spread of the corona virus severely impacts the capacity of Europe and the USA to export fruit, which leads to a lot of insecurity in the industry. Chinese importers are taking a risk doing business in this industry. The concrete impact of the COVID-19 pandemic on the market is not yet clear. However, when the pandemic is brought under control, market demand will undoubtedly recover. Furthermore, now that Europe and the US are unable to export regular volumes of fruit, the prices will rise."
"The kind of oranges we import from the USA are considered high-end market oranges. The product quality is excellent and the price is quite high. Chinese consumers have a growing demand for imported agricultural products. The import of high-quality products is therefore extremely important. We strictly manage the selection process of import fruit to guarantee the highest product quality for our clients. This year, the product quality of early season varieties was not stable. The appearance of the fruit was not great, but fortunately the product quality has now stabilized. The flavor of US oranges is better than the flavor of oranges from other production areas. The sugar content and the nutritional value are both very high. This is one of the reasons why US oranges are so popular in the Chinese market."
Shanghai Sango Fruit has 10 branch companies active in Shanghai, Jiaxing, Nanjing, Qingdao, Linyi, Zhengzhou, Jinhua, Chengdu, Chongqing, and Guiyang. The companies mainly sell through wholesale markets and in more than 50 supermarkets across the country. In addition to import products, the company also provides the Chinese market with domestic products, though domestic activities are mainly focused on the management of premium products in Nanjing and Jiaxing. "We hope to find new business partners in China and abroad to further advanced the Chinese fruit industry and expand the variety of high-quality fruit."
For more information:
Shanghai Sango Fruit Co., Ltd.