The Chinese market price of Hebei pears has been high for months. The main reasons include a reduction in production volume as the result of extreme weather conditions in production areas. Traders also competed to purchase Hebei pears, which drove the price up and the production volumes of pears from Shandong and Shanxi also declined.
Since Hebei is the main production area of pears in China, the rising price there also stimulated the price in other pear production areas. Another reason for the rising price is the strong brand name of Hebei pears, which encouraged competition for the limited supply volume. Export has been smooth as orders from overseas buyers streamed in.
Fresh pear processing factory
The purchasing season is almost at an end and Hebei pear exports have slowed down, while the supply volume of Gong pears from Shanxi is also limited.
"Considering the reasons for this situation, we can look at the conditions in different production areas. In Hebei, the cost of refrigerated storage is calculated as a lump sum when pears are entered into storage. This adds to the product cost. Furthermore, the purchase price of late-season Ya pears was quite high. But the Ya pear market experienced some difficulties that delayed the retail season. At the same time, mangoes had already entered the market in Indonesia, which is one of the largest export markets for Chinese pears. The price of Indonesian mangoes is low because the harvest is abundant this year. This has an impact on the market share of Chinese pears." This is according to Mr. Gavin Bian of Hebei Tianbo Fruit Co., Ltd.
Export to other Asian markets has also been difficult. The growing severity of the Covid-19 pandemic disrupts regular procedures in the Malaysian market. Furthermore, consumer power is weak and the number of people in the market is low. The approaching Christmas season may stimulate sales in the Philippines, but there the Covid-19 pandemic affects consumer power too, and the typhoon season further exacerbates the situation.
"Sales prospects do not look good. In Europe and the United States, market requirements for product quality are high, and the product quality of Hebei pears is somewhat low this year because of natural disasters during the growing season. Competition for the limited supply volume of top-quality pears is fierce. That is why the price of Hebei pears shows polarization.
"The price of top-quality pears is high because suppliers are reluctant to sell. And the price of poor-quality pears is falling because consumer demand is too weak. At the same time, the rising value of the Chinese yuan and the high cost price both push the price of Hebei pears even higher and as a result the trade volume shrinks. In the end, most markets are unable to afford the high price of Hebei pears, especially in Southeast Asia.
"The purchase price in production areas is high, which forces the market price to go up as well. We hope that export markets will be able to adapt to the high price in the next two months. At the same time, we also hope that the domestic market will become more energetic. For example, if the market in south China buys high-quality pears, then the markets in northeast China can absorb some of the medium-quality pears, and thus reduce the volume of pears in the market. That would improve conditions in every market."
For more information:
Mr. Gavin Bian
Hebei Tianbo Fruit Co., Ltd.
Tel.: +86 135 8219 8678