The global fruit trade has suffered from the impact of the Covid-19 pandemic for nearly two years now. Tirection is a company specialized in fresh fruit and vegetable trade. Mr. Huang, spokesperson for the company, summarized their experience in the last two years. He shared with us his insight in the current state of affairs in the import fruit industry.
"That the pandemic has had an impact on global fruit trade is clear to see. Chinese export is growing, but not enough shipping containers come back, which results in rising shipping costs for overseas transport. Many Chinese exporters simply cannot find a shipping container. In addition, preventative measures in domestic industries are strict. Products and personnel are subject to tests and quarantine measures. All of these measures reduce efficiency, take up time, and add to the cost of business," said Mr. Huang.
"Still, despite all of this, the Chinese import volume of fruit continued to grow in the last two years. There are several reasons for this development. First, some overseas production areas have begun to notice the advantages of trade in the Chinese market. They continue to increase their export volume for the Chinese market. Second, many production areas continue to expand their production volume, which also stimulates export trade. These two reasons combined mean that the Chinese import volume of fruit did not decline in the last two years, but instead only grew larger."
"Most of the growth in import trade comes from Asian goods. According to Mr. Huang, "earlier this year the market panicked over the 'cherry incident', when a batch of import cherries tested positive for traces of Covid-19. The effect was felt not just by cherry traders, but rippled out to include other Western products as well. As a result of these uncertainties, Chinese import of Western products declined."
"By comparison, some Asian goods flourished in the last two years. Take durian for example, this fruit was previously valued simply for its high nutritional value and unique flavor. This year, however, the durian became a 'trending' product. Bakeries, restaurants, and ice cream stores all began to promote durian-flavored products such as cakes and fruit dishes. Consumer appreciation of durian rapidly rose to new heights. Another example is the coconut. Coconuts are unprocessed, natural fruits. They can easily be turned into a drink, which is more complicated for most fruits. Since Chinese consumers start paying more attention to healthy and safe foods, the coconut has grown in popularity. That is one of the reasons why Asian products continued to do well in the Chinese market during the pandemic."
Mr. Huang also talked about his predictions for the second half of this year. "It is very clear that the volume of import fruit still does not satisfy Chinese market demand. Only a few years ago import fruit could only be found in first-tier cities, but now the consumers in second- and third-tier cities want to buy import fruit as well, and there is not enough. E-commerce platforms and diverse retail channels further spread the sales of import fruit across China. Consumers everywhere have a variety of import fruit to choose from, and a growing number of consumers in mid-sized and smaller cities buy more and more import fruit every year. There is huge potential in the import fruit market," said Mr. Huang.
"The outbreak of Covid-19 is largely brought under control in China and overseas markets are also taking steps to bring an end to this pandemic. Industries will gradually recover, and the organization of the Shanghai International Fruit Expo on August 12-14 is proof of that."
When asked about his expectations of the expo, Mr. Huang explained: "The expo is an important commercial event, but I would say it is even more important as a social event. This is a gathering for people in the industry. The expo offers a platform for people to enjoy and socialize together. We are in hall E5 at booth G1-1, and we welcome all our old clients and new friends to visit us there!"
The headquarter of Tirection is in Shenzhen, Guangdong. "Although there are quite a few companies that offer freight agency services, they are also limited in many ways. Only a few freight agencies can operate on a large scale. Only when the scale is large enough can freight agencies offer a strong distribution network and low-cost services. Only the larger freight agencies have the capacity to offer advance funds for clients and other similar services," said Mr. Huang. "Our development vision is not to expand through diversification, but to offer our clients long-term, stable supply chain services."
For more information:
Mr. Huang
Tirection
Tel.: +86 18928079375
E-mail: 17963149@qq.com