The supply season of Chilean cherries is slowly coming to an end. The last week of January is the last peak period of Chilean cherry supplies to the Chinese market. The overall supply volume is estimated at more than 3,000 shipping containers. The supply volume will significantly decline in February.
Compared to last year, the price of 5-kg boxes of Chilean cherries dropped by 100 yuan [15.44 USD]. The most dominant cherry variety is the Lapins. The price of single J, 5-kg boxes of Lapins cherries is between 180-210 yuan [27.80-32.43 USD]. Last year the same product cost as much as 280-320 [43.24-49.42 USD]. Apart from the price, sales conditions were stable this season. The market did not experience major fluctuations like last year.
"There are several reasons for the market conditions this season. First, the Chilean cherry production volume expanded by 30%-35% this season. Around 90% of the Chilean cherry production volume is destined for the Chinese market. Chilean cherry producers indicate that the Chilean cherry industry can maintain this pace of growth for several more years.
"Second, the cargo ships arrived close together. Some of the ships even arrived early. This meant that the supply flow continued uninterrupted. When the supply flow is interrupted, temporary shortages lead to price fluctuations. The continued supply of Chilean cherries this season guaranteed a steady market." This is according to Mr. Wu Longxing of Guangzhou City Ji Guo Xuan Trade Co., Ltd.
Mr. Wu further explained, "Thirdly, the product quality was not as good as expected this season. The main reason for this decline in product quality is the labor shortage caused by the outbreak of Covid-19. The labor shortage complicated harvest activities and not all the cherries were harvested and processed at the right time. That is why there were a lot of second-grade cherries. These cherries are not as firm and they are likely to produce moisture inside the packaging, which reduces their shelf life. This problem is becoming more obvious towards the end of the supply season. In addition, the outbreak of Covid-19 significantly reduced the consumption power of Chinese consumers. Cherry traders lowered the price to increase the sales volume and make sure that sales did not halt."
Although January is the peak period of Chilean cherry sales, the supply volume is still rather large, so Mr. Wu suspects that the price will continue to fall. That development will be particularly obvious for second-grade Chilean cherries. However, this is good news for Chinese consumers. Low prices make Chilean cherries available to more consumers during this last peak period of the Chilean cherry supply season.
For more information:
Li Zhixue
Guangzhou City Ji Guo Xuan Trade Co., Ltd.
Tel.: +86 20 8127 3836
