In July, with the diminishing volume of Chinese local oranges and the new crop from Egypt which originally dominated the market of imported oranges, the Egyptian supply season gradually came to an end, and South African oranges are taking their place.
In fact, between February and now, importers have been making a loss marketing Egyptian oranges. Except for a small volume of early products that were profitable at the beginning of the season, the crop has been marketed at prices lower than the cost. The reason for the good market at the beginning was a lack of supply, which led to large volumes being shipped to the Chinese market.
With the gradual increase in volume, prices fell at an accelerated pace. This was good for consumers, but for Chinese purchasers, prices were falling too fast - they may have just purchased products the day before, but were already losing money on the next day before the products even arrived at the market. This is also one of the reasons why it was difficult to shift goods.
In addition, most importers could only improve this situation by putting the fruit into storage and waiting for the market to improve. This also led to a lack of quality in the later period, and the opportunity for prices to increase got even slimmer. This also led the market to have short-term price increases, but sales prices never exceeded the cost, and this is not even counting waste losses and storage costs. In addition, the past few months were not the best sales season for oranges, and the Covid pandemic also led to a lack of domestic consumption power in China. All these reasons have led to the low overall prices of Egyptian oranges.
It is estimated that with the diminishing volume in storage, most of the products have been stored for too long and the quality is lacking. So it is expected that the market will remain low for the rest of the Egyptian orange sales season.
Source: Jiguoxuan Imported Fruit Wholesale