"China: "Rich apple harvest does not lead to a rich reward"

"The Chinese apple market has been in a bad situation since 2017 and even now a rich harvest does not equal a rich reward. The apple production volume last year increased by 35%-40% in comparison with the previous years. The market price, however, dropped to its lowest point in recent years. Apple farmers suffer severe losses as both the cost price continues to rise and the market price continues to drop. In some areas a large portion of the apple production volume is simply unmarketable. The current market price for good-quality apples is around 1.5 yuan [0.24 USD] per 0.5 kg. Apples that are not quite good enough sell for only 0.70 yuan [0.11 USD] per 0.5 kg." This is according to Mr. Sun of Shanxi Ai Guo Hui Company, speaking to an interviewer of Fresh Plaza B.V.

"There are three main reasons for these developments in the apple market: the first reason is product variety. The nationwide surface area devoted to apple production is quite extensive. Some of the apple farmers have chosen to focus on quantity instead of quality. In the end their market profit is relatively small. The second reason is that competition from imported apples grows stronger every year. The third reason is that many relatively good-quality apples are unable to prove their actual market value because their retail channels are limited."

"We possess more than 200 hectares of apple orchards in Yuncheng City, Shanxi. Our apple varieties include Red Fuji, Gala, Red Star, Qin Guan, and Hua Guan. We currently sell our apples through traditional retail channels. Our apples are predominantly sold through large-scale wholesale markets in first and second tier cities throughout the country. We believe that the way to change the difficult situation in the retail market is to open new channels for retail. This is key. At present, while the domestic market develops at a steady pace, we are looking at purchasers in Southeast Asia, the Middle East, Russia, and Bengal. We hope to be able to sell our apples in overseas markets."