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Domestic market under pressure because pandemic complicates pomelo export

Chinese pomelo price steadily declines as weather conditions cause excessive market supply

Pomelo production areas in China are primarily located in the warm south. Market conditions were quite good in recent years, so the overall surface area devoted to pomelo plantations has steadily expanded in the last few years, especially in Fujian. Now that many of the pomelo trees have reached their most productive years, the overall production volume quickly grows. This development puts a lot of pressure on the market. At the same time, many farmers who blindly follow trends are only focused on production volume, not product quality. They do not pay enough attention to plantation management. This increase in poor-quality pomelos spoils the appetite of consumers.

"The pomelo supply from various major production areas has always been staggered. Pomelos from Hainan, Guangdong, and Yunnan usually enter the market before pomelos from Fujian. This year, however, the weather conditions in south China caused the pomelos from different production areas to enter the market around the same time. The excessively large supply volume put a lot of pressure on the market price. In some areas the retail price dropped below the cost price of plantation. Many farmers were unable to avoid financial loss." This is according to Ms. Zhu Ling of Meizhou City Shengkai Agriculture Co., Ltd.

Ms. Zhu continued, "the overall production volume is huge and pomelos from many production areas entered the market at the same time, which are two main reasons for the low price levels. In addition, the pandemic complicates export, and many exporters sell pomelo in the domestic market instead. Exporters have faced many challenges since the outbreak of Covid-19. Distribution is more complicated and overseas demand is weak. Export involves a lot of financial risk, and many exporters prefer to supply the domestic market instead. This further adds to the situation in which market supply greatly exceeds consumer demand."

In the end, there is a certain short-term demand from the domestic market during the festive period around National Day [1 October]. Pomelos are considered a suitable gift during the holidays, and so consumer demand for high-quality, gift-wrapped pomelos grows stronger, but only for a short while. The overall supply volume continues to grow and competition is fierce. Under these circumstances the price can only go down.

For more information:

Ms. Zhu Ling

Meizhou City Shengkai Agriculture Co., Ltd. 

Tel.: +86 139 2301 0035 


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