Yongchun Lukan mandarin oranges produced in Fujian, China, are very popular in the Chinese market in Southeast Asia. Because of its nature as a New Year gift, it is often sold as a New Year gift before the Lunar New Year. Therefore, after the season starts in November every year, the peak export season generally lasts until the first half of the Spring Festival, when demand and sales are relatively stable. But this year things are different. It is understood that most of the export orders had basically ended by early to mid-January (that is, one month before the Spring Festival), about two weeks earlier than in previous years, and prices and sales have declined.
"Due to the good weather, this season started about ten days earlier. The quality and taste of the fruit are ideal, with more large-size fruits. However, the price and volume have dropped," said general manager Chen Zhiming, from IsFresh (Xiamen) Import and Export Trading Co., Ltd which is mainly engaged in citrus export.
"This made export orders arrive earlier, but it also ended earlier. Now the export shipment has been completed, which rarely happened in previous years. This year, the order volume has decreased by about 20%, and the price has also dropped by 20% - 30%."
"It's not clear why the peak season ended early. According to my estimation, it may be related to the variety and the economic environment. In recent years, varieties such as Wokan and Papagan have become very popular. As a traditional variety, Lukan has been impacted by these emerging varieties, and its market share has gradually decreased. With a bumper harvest for most domestically produced citrus this year, the overall price has dropped, and the prices of Wokan and Papagan are also lower than before, further eroding the market share of Lukan. Secondly, under the influence of the economic environment, market demand is weak and customers are cautious when purchasing."
"Furthermore, changes in various export markets also affected sales to a certain extent. For example, it is reported that the winter vacation for Malaysian students will last for more than a month this year. The long vacation may prompt more families to travel and reduce local fruit consumption. The reduction in Indonesian import quotas also affects the quantity of citrus imports. The Philippine market tends to favor medium-sized Lukan fruits, and this year there are more large-sized ones."
IsFresh (Xiamen) Import and Export Trading is mainly engaged in the export trade of citrus and grapes. Their export markets include Malaysia, Singapore, the Philippines, Indonesia, Bangladesh and Myanmar. According to Chen, January is the season for Chinese Wokan and Papagan, and the company will focus on exporting these two types next.
