This is the time of year when retailers stock up on apples in preparation for the Chinese Spring Festival [12 February, 2021]. Farmers put their stock on the market and cold storage facilities open their doors to flood the market with apples. That is why the price of apples suddenly dropped. The current price is 10% lower than around this time last year. Some of the apple production areas have implemented quarantine measures to prevent the spread of Covid-19, which slows down the distribution of apples from these areas and dampens the enthusiasm of buyers. At the same time, the transport cost is rising in many areas especially where apples cross provincial borders and have to pass through strict inspection. Furthermore, the shortage of trucks adds to the transport cost.
"Our apples mainly come from Yantai in Shandong, and we mainly sell Fuji apples. Under regular weather conditions, our supply period begins every year in late October and continues until the end of May in the subsequent year. We sell in domestic markets and export to overseas markets. In the domestic market we mainly sell our apples through traditional retail channels in wholesale markets and supermarkets throughout the country. In the export market we mainly deliver to Southeast Asian countries. The best-selling and most recognizable apple in the export market is the Fuji apple." This is according to Mr. Bai of Dalian Farm International Trade Co., Ltd.
The export price of Chinese apples is quite low at the moment because the production volume continuously grows. The low price gives Chinese apples an excellent competitive position in the international apple market and stimulates the overall export volume of Chinese apples.
According to Mr. Bai: "Our sales volume is not affected by the overall increase in production volume because we focus on the high-end market for premium apples. There is always a steady demand for premium apples from domestic and overseas customers. That is why our sales remain stable."
For more information:
Dalian Farm International Trade Co., Ltd.
Tel.: +86 188 4087 9071