This is the time of the year when lychee enter the market in large volumes. Just like last year, there is a lot of pressure on lychee sales in June and July. That is primarily because there are a lot of lychee production areas throughout China, but most of them supply the market in June and July. In addition, the overall surface area devoted to lychee plantation continuously expands and lychee enjoyed an abundant harvest this year. This year the overall production volume of lychee increased by 10%. As a result the supply volume is larger than last year, and that puts pressure on the market price.
In addition to domestic lychee, the market also offers import lychee, especially from Vietnam. "The market conditions are better for imported lychee from Vietnam. Their sales conditions are great and the price is higher than around this time last year. Most of the Vietnamese lychee currently on the Chinese market come from Bac Giang. The Bac Giang lychee export season officially began in mid-May and is now nearly over. We import our Vietnamese lychee via the border port of Pingxiang, and we mainly sell them in Beijing, Shanghai, and Nanjing." This is according to Mr. Liao Mingyun, CEO of Guangzhou Guangxing Trade Co., Ltd.
Mr. Liao also stated, "the Chinese import volume of Vietnamese lychee is larger than last year. The price should therefore be lower than last year, but the opposite is true. That is mostly because the production costs in plantations have increased, such as land rent, labor cost, and other expenses. In addition, the product quality of lychee is very good this year, because Vietnamese lychee farmers continue to improve their knowledge of lychee plantation. However, the Vietnamese government also provides much support for the lychee industry, including economic subsidies."
China is an important market for Vietnamese lychee. Chinese consumers purchase around 50% of the Vietnamese lychee export volume. In the last few years, Chinese demand for import fruit has quickly grown. And the Bac Giang lychee from Vietnam is now a well-known brand in the Chinese lychee market, especially in first-tier cities such as Beijing, Shanghai, Guangzhou, and Shenzhen.
For more information:
Mr. Liao Mingyun - CEO
Guangzhou Guangxing Trade Co., Ltd.
Tel.: +86 20 3724 3388