"This was one of the most miserable years in the history of Egyptian orange export to China. The price maintained a low position throughout the export season. The main reason for this situation was the outbreak of Covid-19 shortly after Chinese Spring Festival [25 January, 2020]." This is according to Mao Guangju, CEO of Shanghai OK International Trade Co., Ltd.
"Shortly after Spring Festival, in the early days of Covid-19, the market conditions for Egyptian oranges were relatively good. The price was still alright, because the supply volume was limited and Chinese consumers were eager to buy fruits that are rich in vitamin C to strengthen their immune systems."
"At the same time, Egyptian orange export to Europe rapidly expanded. Smooth sales conditions stimulated the price of Egyptian oranges. Some Chinese importers purchased Egyptian oranges at that time and stored them in their warehouses. They hoped to sell the Egyptian oranges at high prices later in the season."
"However, the market unexpectedly took a turn for the worse. The supply period of domestic oranges lasted much longer than usual. Experts predicted that the market would absorb the supply volume of domestic oranges in April, but that turned out to be too optimistic. The production season of domestic oranges only finished in June."
"In addition, many restaurants and drinks shops temporarily closed down. In that period the product quality of oranges in storage deteriorated. This development had a serious impact on the sales conditions of Egyptian oranges. Traders with oranges in storage were eager to sell them before they went bad, so they had no other option but to sell their oranges at low prices."
For more information:
Mao Guangju - CEO
Shanghai OK International Trade Co., Ltd.
E-mail: Jeffrey@okfruit.me