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Poor Hami melon market conditions in south China start to affect east and north Chinese markets

The production season in Hainan is already over, but other production areas took up the baton in June. Melons from glasshouse production areas in Shandong, open-field plantations in Xinjiang, as well as open-field plantations in the Yangzi River region and further south all entered the market in June. Ms. Wang of Shenzhen Xiyu Huaguoshan Agricultural Product Development Co., Ltd., recently talked about current conditions in the muskmelon production areas and markets.

"Production areas in Anhui suffered from cold weather earlier in the season. A cold current in March affected the development of melons in Anhui and delayed the production season by 10 days. The harvest in Anhui only began on the 10th of June. The current supply primarily comes from greenhouse melon plantations."

"Open-field melons from Xinjiang have only just entered the market. Low temperatures earlier in the season slowed down the growth of melons, and high temperatures during the harvest season also lowered the product quality. Many melons show signs of fermentation and some of the melon varieties suffered in terms of flavor and size.

"Melon production areas in Xinjiang generally supply markets in south and east China. A recent outbreak of Covid-19 in Guangdong has slowed down trade in Guangzhou and Shenzhen. Sales difficulties also have an impact on preceding segments in the supply chain, such as distribution, harvest, and purchasing. Market conditions deteriorate when production and marketing are not aligned. In addition to the impact of the pandemic, Guangdong also suffered from heavy rainfall in the last few weeks, which is another blow for the sales of muskmelons. The price simply dropped and still the sales volume did not grow. Market conditions are extremely chaotic," said Ms. Wang.

"There are still some melons from the last stage of the production season in Hainan. The price of Hainan melons began to drop in April and is now only around 2-4 yuan [0.31-0.62 USD] per 0.5 kg. But even at that price there are no buyers."

"Melons from Shandong enter the market in May, around the same time as the production season in Hainan comes to an end, and early-season melon varieties from Xinjiang enter the market. In comparison, the product quality of Shandong melons is quite alright. The melon production areas in Shandong do not have a great competitive advantage in the market.

"First, Shandong production areas do not produce outstanding melon varieties that attract consumer attention. Second, the Hami melons from Shandong enter the market at the same time as watermelons. The overall surface area devoted to watermelon plantation expanded this year, and the production volume increased. The purchase price is quite alright, as are the retail market conditions for watermelons. When watermelons enter the market, they draw away some of the demand for Hami melons."

Production areas in Shandong primarily supply markets in east and north China. The market conditions there are somewhat better than in the south, especially because weather conditions have been regular and the product quality of Shandong melons is alright. The price is also higher than last year.

The level of Chinese melon brands has greatly improved over the last few years. The Korla Xiyu Huaguoshan Specialized Agricultural Plantation Cooperation also seeks to break through and establish a strong brand. "This year we invested in improved packaging for our products. We hoped to present our customers with a new vision and improve the image of our Hami melons. And we swiftly received great feedback from our clients."

For more information:

Ms. Wang Qi

Huaiyuan Xiyu Huaguoshan Modern Agricultural Science and Technology Development Co., Ltd.

Shenzhen Xiyu Huaguoshan Agricultural Product Development Co., Ltd.

Korla Xiyu Huaguoshan Specialized Agricultural Plantation Cooperation

Tel.: (+86) 136 0269 3566 

E-mail: [email protected] 

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