Chinese Aiyuan tangerines from Sichuan have been on the market for about two months. The product quality is not great this season, and like many tangerine varieties the supply volume exceeds market demand. That is why the market price is quite low. Li, manager of Sichuan Bai Guo Hui recently talked about the current market conditions of Sichuan Aiyuan tangerines.
The overall surface area devoted to tangerine plantation in Sichuan expanded by 20% this year, and so did the production volume. However, rainfall has been excessive this season and the product quality of many tangerine varieties is quite poor this year. The tangerines are not very sweet and there are spots on the fruit peel. The volume of top-quality fruit is quite small. Few customers come back to purchase more.
"The sales season of Aiyuan tangerines is already half-way through. The current purchase price in production areas is around 3 yuan [0.46 USD] per 0.5 kg. That is 1 yuan [0.15 USD] less than around this time last year. The market price of Aiyuan tangerines is all over the place because the product quality is not reliable. Market prices range between 3-5 yuan [0.46-0.77 USD] per 0.5 kg. And the price is falling," said manager Li.
"In addition to Aiyuan tangerines, the Baba tangerines also entered the market one month ago. Baba tangerines are considered high-end products in the Chinese tangerine market. In previous years buyers competed vigorously to purchase their supply volume of Baba tangerines. And the price increased every time the tangerines changed hands. Last year the purchase price in production areas was 5 yuan [0.77 USD] per 0.5 kg and the wholesale price was 5.5 yuan [0.84 USD] per 0.5 kg, while the retail price went as high as 7.5 yuan [1.15 USD] per 0.5 kg. This year, however, the price dropped because the product quality was poor. The current price is around 2-3 yuan [0.31-0.46 USD] per 0.5 kg. Trade is relatively slow both on e-commerce platforms and in physical stores."
The sales season of Baba tangerines is expected to continue until February next year. That is when the Shiranui or Dekopon tangerines enter the market. They are not yet ripe, but conditions in orchards suggest that the product quality of Shiranui tangerines will not be great either this year. The actual conditions, however, will only become clear during the harvest season.
When asked about the strong points of Sichuan Bai Guo Hui, manager Li answered: "Our greatest advantage is the integration of production and retail. We own an orchard that covers a surface area of 133 hectares. In addition, our company owns production facilities for the agricultural resources we use in the orchard such as organic fertilizer and fruit baskets. We also maintain our own supply chain. After the tangerines are harvested and processed, we can directly deliver them to our major clients. That is how we reduce unnecessary intermediaries. And without intermediaries, we are able to keep the price low."
For more information:
Li - Manager
Sichuan Bai Guo Hui
Tel.: +86 18328377868