The sales season of Sichuan Chunjian is coming to an end, and the current prices are much higher than in previous years. "The output this year is reduced and the taste is ideal, but the price is high," according to Mr. Li Yongqiang of the Xinping Zhenxin Fruit Factory speaking to FreshPlaza.
"Last year, the summer was dry and rainless, and the winter was cold, which caused some fruits to dry out or suffer from frostbite, and the overall production decreased. However, the taste of the ripe fruits is better than in previous years, which is one of the reasons for the price increase. The later in the season, the better the taste so the price rises naturally, though this year it's been higher than usual and the possibility of artificial speculation cannot be ruled out. "
"The fresh fruit production season of Chunjian starts at the end of November and the beginning of December and finishes at the end of April. The purchase price of fresh fruit this year has gradually increased from ¥6-8/kg to ¥10-¥12/kg, and finally exceeded ¥20/kg. In a normal year, the purchase price was mostly ￥6-￥8/kg, and it exceeded ￥10/kg at the peak, or around ￥12/kg. This year's highs are double what they would be in a normal year. Compared with recent years, the purchase price this year has exceeded the market selling price of the previous year."
"Before the Spring Festival, some merchants stockpiled fruits because they were worried about reducing production, but the taste at the beginning of the production season did not meet expectations. At that time, the market was not yet fully prepared, and the price was not as good as expected. Because the time in cold storage cannot exceed 50 days, in order to avoid excessive losses, the merchants tried to sell them as soon as possible, resulting in a certain loss. After that, at the end of February and the beginning of March, the fruits were ripe enough, and the taste was at its best for a short period of time. The purchase price increased from ¥8-¥10/kg to ¥18-¥20/kg."
Li said that judging from this year's situation, Chunjian shows signs of developing. He believes that although the current market profit is good if it develops like this in the next few years, there will be price risks.
"Perhaps due to the low output and good taste of Chunjian this year, the market can still accept the high price, but the sales are not so smooth. However, if it develops in this direction in the future, once the price exceeds the market's tolerance range in a certain year and there is a sharp drop, it will be like a futures crash, and the risk is too high! "
The Xinping Zhenxin Fruit Factory mainly deals in Chunjian, Aiyuan oranges, and Ugly oranges from Sichuan, as well as Wogan, Chu oranges, and tangerines from Yunnan. The business includes the acquisition, processing and sales of citrus, and owns orchards and processing plants in Yunnan. The company mainly sells in the wholesale market and supplies goods to supermarkets.