The temperature in China dropped earlier than usual last year, and that had an impact on the sales of lemons. More recently market demand for lemons rose again. The price is currently stable. Manager Ma, sales spokesperson for Sichuan Snow King Lemons, recently talked about current conditions in the Chinese lemon market and the export market.
Manager Ma first spoke of conditions in production areas. "The production volume this season is around 400,000 tons. The production volume declined by roughly 30% compared to last season because temperatures dropped earlier than usual last year. However, the percentage of commercially viable fruit was higher than last season. The harvest is already in storage. The price increased by 30%-35% compared to previous years because the production volume declined. The price of all the lemons in storage remains rather high."
Sichuan Snow King Lemons is a service company specialized in the plantation, harvest, processing, and sales of lemons. The company handles more than 55,000 tons of lemons per year. Snow King Lemons primarily sells lemons in the domestic market to beverage shops, restaurants, and wholesale traders. The company also exports a small volume of lemons to Southeast Asia.
"Domestic market demand mainly comes from restaurants. It is not winter and the overall demand volume is rather low, so goods movements are limited, especially now that the temperatures dropped earlier than usual. Low temperatures always affect lemon sales. However, the pandemic is largely under control in China and the economy is quickly recovering. That is why demand has recently been growing."
When asked about the market predictions for the next few weeks, manager Ma replied: "Some sellers began to speed up preparations in the middle of January, and domestic order volumes are gradually growing. Price fluctuations have been minimal since the Spring Festival period ended. And market demand will likely remain stable as well."
Sichuan Snow King Lemons exports a small volume of lemons to the Southeast Asian market. The export price of lemons has been stable for the last few months. The current FOB price is around 19.50 USD. "Our export volume is smaller than in previous years. That is mainly because of the pandemic and the rising shipping costs, which add to the uncertainty in the lemon export market."
When talking about the competitive advantage of Chinese lemons this season, manager Ma explained: "The price of Chinese lemons is rather high this season, and the cost price of Turkish or Egyptian lemons is lower, which gives them an advantage. But that is only a seasonal advantage for a few months. Chinese lemon production areas produce Eureka lemons all year round."
Sichuan Snow King Lemons was established in 2020. The company is located in Anyue county in Sichuan, also known as the 'hometown of lemons in China'. The company motto is 'product quality first, and customers above all else'. The company mission is to enhance the income of lemon growers, stimulate development for strategic partners, and guarantee stable supply for clients. That is how Sichuan Snow King Lemons helps to develop the lemon supply chain in Anyue county.
For more information:
Ma Jie - Manager
Sichuan Snow King Lemons
Tel.: +86 18189675898