The domestic market in China is gradually recovering from the pandemic. The largest obstacle for traders is global distribution. Jiaxing Hi Go Fruit, a subsidiary of Zhuangan Fruit and Vegetables, is one of the specialist importers in the Jiaxing Market. Leo Wei, spokesperson for the company, recently talked about current conditions in the fruit import market.
The Peruvian avocado season is coming to an end. Looking back on this season, Leo Wei said: "Weather conditions in production areas and shipping delays greatly reduced the supply volume early in the season in April and May. The price was relatively high at 160-180 yuan [24.79-27.88 USD] per box. The supply volume was much larger in the second half of the season, and in addition, some of the avocadoes developed product quality issues such as black spots. The price of top-quality avocadoes dropped to 70 yuan [10.84 USD] per box. Now that the season is almost over, with only two or three weeks left, the supply volume is much reduced. In previous weeks about 100 containers arrived per week, and now only 30-40 per week. The conditions in the final phase of this season are quite positive."
The end of the avocado season also marks the beginning of the Peruvian blueberry season. Peruvian blueberry export to China is expected to grow by 20% this season. "As for the price, when the popular blueberry varieties just entered the market at the start of the season, the price opened around 170-180 yuan [26.33-27.88 USD] per box. The price already dropped to 150 yuan [23.24 USD] per box, but that is still 20-30 yuan [3.10-4.65 USD] per box higher than around this time last year," said Leo Wei.
"Compared to the period following the outbreak of Covid-19 the current levels of consumption are much higher. The main obstacle for the fruit industry is transport. These problems with shipping delays and backlogs could well last until next year. And they may influence market conditions later in the season, causing fluctuations and destabilizing the price." When asked about the measures they take, Leo Wei replied, "we distribute our import volume over several ports to reduce the risk of all our containers being stuck in the same port."
In addition to blueberries and avocados, the company also sells South African oranges. "The wholesale price of Summer oranges was around 200 yuan [30.98 USD] per box in the last two weeks. More recently the price came down to about 180 yuan [27.88 USD] per box. The overall conditions exceed expectations and are likely to remain strong until domestic oranges enter the market in October."
There are many import and export companies in the Chinese fruit market. When asked about the competitive advantage of Jiaxing Hi Go Fruit, Leo Wei explained: "We have delivered supply chain services for fruit subcontracting and retail since 2005. We own the largest fruit distribution center in Jiaxing Market with a storage space that covers an area of 17,000 square meters. We can simultaneously store more than 300 shipping containers. In addition, we have distribution and transshipment centers in the 6 largest cities in China. Through these centers we deliver highly efficient supply chain services for transshipment and direct delivery of fruit products."
"The main difference with other, traditional fruit importers and exporters, is our basis in fruit retail, rather than wholesale. We provide supply chain services from direct purchase in production areas, packaging and processing, storage and distribution, to wholesale and retail. We work hard for integrated supply chain management and strive for comprehensive services from orchard to consumer," said Leo Wei.
"We think that re-packaging in retail areas is one of the important developments in the fruit industry. When the fruit is packaged for the second time, fruit that spoiled can effectively be removed, and so the spoiled fruit will not drag down the price of good-quality fruit. In addition, repackaging allows traders to find the most suitable supply solution for diverse retail channels and consumer groups, such as standardized packaging or custom-made solutions. To this end we imported the most advanced small packaging line from England, so that we can custom-make unique packaging products for all our customers," said Leo Wei.
"Customers can select loose fruit from the store and package them in the store. Standardized, premium in-store packaging is the future of the fruit market. That is why we pay attention to re-packaging."
Zhuangan Hi Go Fruit will participate in the (delayed) Shanghai International Fruit Expo on 8-10 October. "We will bring the most representative, premium fruit products from China and abroad, as well as the most diverse, custom-made re-packaging material produced by world-leading packaging technology. We are more than happy to give visitors at the expo a demonstration of the advantages of custom-made repackaging solutions."
For more information:
Leo Wei
Jiaxing Hi Go Fruit
Tel.: +86 13563879068
E-mail: mia.lu@higofruit.com