Chinese pomelo prices may continue to fall later in the season

Pomelos are expected to hit the market in large volumes in October. Due to the suitable weather during the growing season, the production and harvest conditions in main production areas such as Fujian and Guangdong have been good, and the production in Sichuan and Guangxi has also increased. Now that the National Day and Mid-Autumn Festival are approaching, prices of various produce have risen sharply. Has the pomelo market this year seen a substantial increase as well?

Pomelo prices low from the start
At present, the main production areas in China include Fujian, Guangxi, and Guangdong, whose production supplies a majority of the Chinese market. Although there is a festive atmosphere, prices this year are not as good as what everyone has expected. Since the new crop became available in early June, prices in Hainan have fallen rapidly. Since September, some areas have been seeing slow sales. It was reported in the news not long ago that more than over a hundred tons of red pomelos were left unsold in Nan'an, Fujian. So why did pomelo prices fall right after the fruit hit the market this year?

Volume expanding but quality not improving
There are now large-scale cultivation operations across China. The yearly production of this fruit has reached 4.8 million tons in 2019, making pomelo a fruit with the largest production among all citrus fruits. With the sharply increasing production and the unchanging market demand, a decline in the price and increasingly fierce market competition are inevitable.

In addition to the significantly higher production, the decline in quality brought by early harvest is also one of the main reasons for the declining prices. Early varieties generally start to become available in June. At the time, prices are much higher than that of September. For example, prices in June can reach 4-5 yuan/half a kilo, while they can only reach 1-2 yuan/half a kilo in September. Therefore, many wanted to seize the high-profit early market and moved the harvest forward, which has led to tart-tasting and less nutritious fruit.

Prices may continue to fall 
Driven by the festivals, the demand for red pomelos has increased. Prices gradually rose but began to fall after reaching the peak in early September. Currently, white pomelos are not yet available in large volumes and prices are relatively stable, but they are expected to fall after large volumes become available in October. At present, the two national holidays have driven market consumption up, so prices in various production areas are stable. However, after the holidays, prices may fall sharply again in areas.

Source: iFresh

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