New crop affected by unfavorable weather conditions

China: Mandarin volumes down

The new mandarin crop has been harvested and the mandarin season is in full swing. This year's crop has been affected by bad weather conditions. Drought and excessive rainfall have led to a drop in production which is resulting in rising prices, lower quality and a fall in export. Xiamen Rainbow Fruits, an export company based in the North of China, and Jiangxi Fuzhou Funong Mandarin Cooperative, a citrus cooperative, examine the current market situation.

Mr Xu is the director of the Jiangxi Fuzhou Funong Mandarin Cooperative, a cooperative that mainly trades in mandarin. The cooperative is based in Jiangxi Province, a province known for its mandarin production. In the region Nanfeng approximately 70% of farmers grow mandarins. Total production area covers over 47,000 hectares (700,000 mu). “Each year, we buy mandarins from local farmers and sell them to the wholesalers in different regions in China. Different from most other cooperatives, we have our own transport centre which is subsidized by the government. Once the purchase order is finalized, we make sure the mandarins are delivered as soon as possible.”

Mr Xu acknowledges that the current season is not having a smooth start: “this year's harvest is not as good as last years. Production volumes have come down due to bad weather conditions. After periods of drought there has been a lot of rain rain towards the end of the production season, which has not favoured the growth and storage of the fruit. To prevent the crop to perish, farmers were eager to start selling. That is why the mandarin season kicked off relatively early this year, in late September instead of October”.

Mr Xu of the Jiangxi Fuzhou Funong Mandarin Cooperative

“As a result, premium mandarins were difficult to sell at good prices at the start of the season. We only sell Nanfeng mandarins, which are considered premium mandarins, and keep receiving good orders. Until now farmers have been struggling with harvest quality and volumes. After all, I am positive about the future of the industry and the position of the growers in the long run. Mandarin production is so important for our region that our local government keeps designing and implementing new support policies. I even heard that growers might be given subsidies in the future.”

Mrs Alice Su is the export manager of Xiamen Rainbow Fruits. Mandarins are one of the company's biggest export product. The export season has not taken off smoothly due to the harvest conditions. Mrs Su comments: “our main export products are apples and mandarins which are exported through Xiamen Port to different countries in the world. We mainly export to Southeast Asia. Compared to last year, this season's export volumes have decreased by approximately 15% to 20%. Main reason for the decrease is the drought that has hit the Southwestern regions in China where most mandarin production takes place, and the damage it did to the crop. Looking at the domestic market, prices for mandarins have increased considerably compared to last year. In some areas, prices have increased by more than 60%. Export prices have been so high that the product is less attractive to international buyers.”

“I expect the price of mandarins to continue to climb gradually due to strong market demand. At the moment I cannot predict when the price will stabilise. The situation is affecting our export market. I would be happy if export volumes remained stable from now on, and did not further decrease.”

For more information:

Mr Xu
Jiangxi Fuzhou Funong Mandarin Cooperative
Contact number: +86 13767667395+86 13767667395

Mrs Alice Su
Xiamen Rainbow Fruits

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