When the harvest of Huaniu apples started in Tianshui on September 10, prices were average. This was mainly due to factors such as large volumes becoming available and a lack of traders and sales opportunities. However, these apples have been extremely popular in the production areas recently, and not only has the number of local traders increased significantly, but they have also been rushing to buy and so the price has risen significantly. So why are the prices soaring?
First of all, the two approaching holidays, the Mid-Autumn Festival and National Day are playing a big part in driving up purchasing activities. The pre-holiday period is a golden period for traders to ship to the market. Huaniu, as a well-known variety with its appealing shape and red colour, is a good choice for packaging gift boxes for the holiday market. The holiday market is usually a good sales window for apples, and the fact that the two important Chinese holidays fall on the same day this year means that the sales of apples are bound to rise sharply. It is then natural that prices in the production areas of Huaniu apples are also rising.
Secondly, the diversification of sales channels, the increase in demand for supply, and the competition for high-quality sources have led to an increase in the purchase price of the origin. The rise of e-commerce in recent years has played a significant role in boosting produce sales for remote mountainous areas.
Finally, some production areas of Huaniu suffered from frost and hails during the later part of the growing season. Although the overall production did not decline, the overall quality slipped from previous years, leading to a lack of high-grade fruit and a significantly lower share of commercialised fruit. As a result, traders looking to purchase high-quality goods have to increase the price they offer in order to reach their purchase volume.
The higher purchasing price of Huaniu commercial fruit is an inevitable and natural response to market laws. At the same time, considering the market situation this year, the large volume of low-grade fruit, such as hail-damaged apples, has to be sold at a low price. This polarisation is a major characteristic of apple procurement this year.
Source: Apple Growing Net