Earlier an analysis of some market events explained how there would be a surplus of low end apples this year, but the low prices would make it difficult to sell them off. In reality, however, 80 bags of third class red Fuji apples have increased in price from last year's 2 RMB per kilogram to 4 RMB per kilogram. Nowadays no other apples are being sold for the higher price of 5 RMB per kilogram anymore. The inconvenience of having different standards in all parts of the country has greatly reduced the amount of low end red Fuji apples in stockhouses.
Why is there a high demand for low end red Fuji fruit this year? There are 4 main reasons. First of all, the quality-price ratio is high. Last year the majority of fruit operators lost money and new apples were purchased to be stored and highly controled in order to let them develop to a higher level. Secondly, sales in the market in the preceding period were huge, while the amount of goods in storehouses lowered. As soon as the apples dropped from the trees last year, fruit farmers pushed their apples to the market. The amount of stock was reduced nationwide by 30%, and low end apple stocks even decreased by more than 40%. Thirdly, low end fruit is often exported. This year's exports to India, Bangladesh and other countries increased and mainly consist of Chinese third class fruit and small apples. This brought about a 10% increase of Chinese exports in January-February. Low-grade fruit exports are ample, but the domestic demand for these low end apples is even higher now. Lastly, although the market for apple consumption in China is huge, the loyalty of most consumers still depends on fruit of middle or lower quality. At present, only bananas and low-end apples are relatively cheap all over the country, with a fitting price and thus a slightly larger sales volume.