Chinese apple prices fall as consumer market cools down

Apple traders are feeling the pressure to empty their warehouses, because storage space is in high demand and competition with other fruits is fierce. They are lowering the price of apples in order to sell more. In addition, the average wholesale price of Chinese melons has been low since May, which puts pressure on the average fruit price in general.

This was a year of abundant harvests for apples, Ya pears, and Hami melons, and their prices all dropped quite a lot. Furthermore, the outbreak of Covid-19 has a negative impact on the spending power of Chinese consumers. They do not have a lot of choice under these economic circumstances, so it is only natural that the price of apples comes down as well.

The price of Chinese apples has been low for a while and there are logical explanations for that. The production volume is huge, which puts pressure on the price. Furthermore, the apple market in China does not offer many apple varieties, but there are huge differences in product quality. The volume of medium- and top-quality apples is relatively small, while huge volumes of low-quality apples flood the market. Apart from this, there is also a problem with the stability of apple supplies. There are huge fluctuations in the supply volume from one year to the next. The level of industrialization is not very high when it comes to apple production, and the production volume largely depends on weather conditions. This is one of the main reasons that developments in the apple industry are limited.

In the end, the impact of poor weather conditions was much smaller than predicted and some farmers even had to order more protective pouches to cover all of their apples. In short, the outbreak of Covid-19 had a huge impact on the spending power of Chinese consumers, and the consumer market has not yet recovered. Apples are unlikely to sell if their price is too high.

Source: ftol.com.cn

 


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