India & Indonesia force Chinese apple exporters to find new markets

Alfa Fruit Packers is a daughter company of Alfa Far East Trading, a Hong Kong based company that has been in the produce business for over 30 years. In 2004, Alfa Far East Trading Company Limited invested 3 million USD to build a modern packing facility in China. The plant, namely Alfa Fruit Packers, was completed and started operations on September 2004.

Currently, Alfa Fruit Packers is operating a pack house and cold storage facility on three hectares of land near Yantai, in Shandong province on the East coast of China. The company’s main export markets are in Southeast Asia, topped by India, Indonesia and the Philippines. The company is one of five companies that hold apple export licenses to Australia.

Fuji apples in demand
“We have established long term cooperation with apple growers in Shandong and Shaanxi province. Both provinces are the latest apple producing regions in China. We chose to work with the growers that meet our requirements, and we pay frequent visits to our partners. Our most popular apple variety is the Fuji apple, which we export to the whole of far East Asia. The Fuji apple is the most popular variety in these countries. The consumers prefer sweet, juicy and crispy apples. In addition, Fuji apples keep better in high temperatures, which is very suitable for markets with limited a cold chain infrastructure,” explains Richard, Alfa Fruit Packers’s GM. “Demand for Fuji apples is growing in the Far East, as well as on the Chinese domestic market. Chinese production of this variety is increasing as well.”

Shift in exports to Southeast Asia
“Historically, Southeast Asia is a large trading partner. In recent years, some markets have become increasingly difficult to supply. Indonesia has introduced a quota system that is affecting our sales in that country. In addition, it is mandatory for SGS to approve each shipment before it can be sent. This is adding two cumbersome weeks of additional waiting time before each shipment.”

“Apple exports to India have come to a complete standstill. Indian authorities have claimed there are mealy bugs in Chinese apples and have halted all imports. Mealy bugs are common in all large apple growing regions in China and the US, and are generally considered harmless. At this moment, we are not sure what will happen next. Indian is our largest export market. How do we deal with this? We wait, and try to find other markets in Southeast Asia.”

Alfa Fruit Packers will be present at Asia Fruit Logistica in the second week of September, Hall 3d S-41.

Richard
Alfa Fruit Packers
sales@alfafruitpackers.cn