Ori mandarin price likely to remain stable in the next 4-5 years

Ori mandarins find opportunities for profit in Chinese high-end market

The Ori mandarin variety was introduced to Wuming, Guangxi in 2012. After several years of development, the surface area currently devoted to Ori mandarin plantation has already reached 33,333 hectares. That is roughly 20% of the overall surface area devoted to Ori mandarin plantation in China.

At the same time, the Ori mandarin has penetrated deeply into the local supermarkets across China. This is one of the most popular mandarins in the Chinese market. The harvest of the 2020/2021 season will officially begin in Wuming on the 5th of January, 2021. That is seven days earlier than last year. Although the weather conditions during spring caused the production volume in orchards to decline, the expansion of the overall surface area means that in the end the overall production volume is expected to increase by 30%.

Wuming Ori mandarins

Wuming Ori mandarins

The number one citrus fruit in the Chinese market is currently the Shatang tangerine. The overall surface area devoted to Shatang tangerine plantation in Guangxi is around 300,000 hectares. However, the Shatang tangerine market significantly worsened during the seasons of 2018-2020. The industry slowly began to shrink: some Shatang tangerine farmers have switched to different tangerine varieties and others have abandoned the industry altogether.

The decline of the Shatang tangerine market has to do with market developments, but is also because Shatang tangerines are no longer in fashion. Shatang tangerines lost out to the superior Ori mandarin and other top-quality product varieties.

Even though the Ori mandarin has been on the market for several years, there is still potential for growth. The Ori mandarins are available in prefecture-level cities across the country, but there are still many markets left to conquer. Industry specialists expect the peak period of Ori mandarin sales to take place in 2025. The Ori mandarin will then reach a stable period, but for now consumer demand exceeds market supply, which means that the price is still strong.

Ori mandarin processing factory

Wuming Ori mandarins

In comparison with other mandarin varieties in the Chinese market, Ori mandarins occupy a superior position. First, the diameter of Ori mandarins is convenient and the balance of sweetness and sourness is relatively high. This is exactly how Chinese consumers like their mandarins.

Second, the supply season begins in January and continues until May. This means the Ori mandarin season includes not just the Chinese Spring Festival [12 February, 2021] in January and February, but also the window in March and April when the fruit market is relatively empty. "This is the fifth season that Ori mandarins from Wuwu Orchard enter the Chinese market. This is also the fourth season since we established our own brand. This year our production volume increased by 200% because we opened four new orchards." This is according to Ji Sufeng, chairman of the board of Wuwu Orchard.

Ori mandarin orchard

One of the main problems in the development of the Ori mandarin industry is that the level of technology in most orchards is insufficient. The large-scale plantation of Ori mandarins in China only started a few years ago, so many planters have not yet accumulated the experience to understand and deal with specific growing conditions or the vulnerability to some plant diseases and insect pests.

"Since 2014, Wuwu Orchards has invested in the development of the Ori mandarin industry with the entire supply chain in mind. Every single segment of the supply chain can turn into a bottleneck that halts the development of the entire industry. Wuwu Orchard always carries out in-depth analysis of the market suitability and the profitability of a new product variety, and pays careful attention to the planting and growing conditions as well.

"Wuwu Orchard will begin the cultivation of standardized, high-end mandarins in 2021, beginning with the construction of a standardized seedling nursery where the company team can continue current research on top-quality mandarin varieties." This is according to Ji Sufeng, chairman of the board.

Wuming Ori mandarins

Wuming Ori mandarins

Wuwu Orchard mandarins are still mainly sold in brick-and-mortar shops, but the expansion of sales strategies is one of the main goals of the company. Wuwu Orchard aims to sell mandarins in wholesale markets as well as hypermarkets and fruit chain stores. The company has also established a specialized e-commerce department that is responsible for online sales.

At the same time, Wuwu Orchard works together with Alibaba International to expand international B2B sales. The development of online sales is key for the near future. The outbreak of Covid-19 has further stimulated an already-growing business.

According to Ji Sufeng, chairman of the board of Wuwu Orchard, "This development can not be denied. 2020 has been a difficult year for fruit traders. The outbreak of Covid-19 has weakened the consumer power of Chinese consumers. That is a struggle that the entire fruit industry faced. In addition, the country imposed strict import regulations for food products to further limit the spread of Covid-19. These regulations also applied to import fruit.

The impact of these regulations were particularly noticeable in the medium- to high-end fruit markets in China where supply was much lower than usual. Many traders replaced import fruit with domestic Ori mandarins, which offered the Ori mandarins a rare commercial opportunity in an otherwise depressed market."

In addition to domestic sales, Wuwu Orchard also works hard to expand their share of the export market. Last spring the company successfully exported around 40 tons of Wuming Ori mandarins to Canada. Not only do these Ori mandarins meet the high product quality standards for the export market, but the overall appearance and flavor of these Ori mandarins was of the highest level. At the same time, Wuwu Orchard is conducting business negotiations with potential import partners in Dubai and Singapore.

For more information:

Lin Tiancheng - Deputy Chief

Wuwu Orchard

Website: www.gxmmgy.com 

Tel.: +86 180 7879 3242 

WeChat: +86 177 7707 7929 

E-mail: 2646392680@qq.com 

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