The pomegranate production season in Huili, Sichuan, began in the first week of August and is expected to last until the end of October. "The market conditions for Chinese pomegranates are less than ideal this year. Although the production volume slightly increased in comparison with last year, the product quality is more problematic. The weather was extremely dry during the period when pomegranate trees began to bear fruit, and then the weather became extremely wet during the period when the fruit was supposed to ripen. As a result of these weather conditions the product quality this year is slightly lower than last year." This is according to Ms. Liu of Chengdu Binguo Agricultural Industry Co., Ltd.
"Tunisian soft-seeded pomegranates became immensely popular in China a few years ago and traders gradually began to participate in the pomegranate market. While competition increased, so did the chaos in China's pomegranate market. Earlier in this production season, for example, some traders, who do not understand pomegranate plantation technology too well, decided to harvest their pomegranates early. The purchase price was 1.5 times higher than last year. However, half-way through the season these traders had already suffered severe financial losses."
"The current price of pomegranates is difficult to understand. The market is in chaos. Some pomegranates sell for 70 yuan [9.83 USD] per box, while other pomegranates sell for 150 yuan [21.06 USD] per box. The price of our pomegranates is stable around 115-125 yuan [16.15-17.55 USD] per box (4 kg). Our price is more or less the same as last year. The pomegranate season in Henan is about to begin as well and we expect the price of pomegranates to increase," stated manager Liu.
"As for our sales volume, we expected that we would sell around 2.5 million kg of our pomegranates this year, but looking at the actual figures so far it looks like we will exceed our expectations. The main reason for the growth of the actual sales volume is our increased effort in marketing. We invest in various retail channels at the same time, such as the e-commerce platforms of JD, Xiaomi, and NetEase, as well as such large-scale supermarkets as Lianhua Supermarkets and Rainbow Department Stores, and smaller chains such as Uncle Jack's and Green Leaf.
Binguo Agricultural Industry is located in Huili, Sichuan. Their processing facilities are equipped with automated processing and selection machinery.
"Pomegranates are a minority product. There are only a handful of companies willing to invest in this industry. However, we believe that automation helps to guarantee the product quality of our pomegranates," stated manager Liu.
"The main competition in China's pomegranate market is concerned with issues such as standardization in production areas and market scaling. Our aim in the next few years is to aid farmers in Sichuan production areas with teams of technological experts and establish standards for harvesting and packaging, so that the pomegranate industry will not suffer from chaotic competition.
As for our sales, we hope to expand our retail network and cooperate with traders who require standardization in the pomegranate industry. We hope to encourage direct purchases from production areas and establish a strong brand for soft-seed pomegranates from Sichuan."
For more information:
Liu Wen
Sichuan Binguo Agricultural Industry
Tel.: +86 18628090302
E-mail: liuwen@b-guo.com