Avocados are widely used in the catering industry. In recent years, the catering industry has been affected by the pandemic, and the development of avocados in the Chinese market has slowed down compared with previous years, but the overall growth is still climbing. Recently, FreshPlaza talked to Ms. Doris Xu and Mr. Will Xie of the Shanghai WoNong Import & Export Co., Ltd to understand the market performance of avocados this year.
In recent years, China has imported about 2,000 containers of avocados per annum, of which Peru accounts for about 60% of the total, Chile accounts for about 20%, Mexico accounts for 5-10%, and other countries account for about 10%.
"The import volume of Peruvian avocados this year is basically the same as last year. Among them, due to Peru's sharp increase in shipments in the early months of January to March, the import volume of Mexican avocados in the same period dropped significantly. On the demand side, due to the impact of the pandemic and the poor economic environment, the market demand has declined this year, and the peak period is lower than last year. Especially during the pandemic in Shanghai from March to May, problems such as rising freight rates and delays in shipping to ports occurred, which brought great challenges to the quality, storage, and cargo circulation of avocados, and some batches of goods were seriously damaged," Will said.
"In addition, compared to last year, the market for imported avocados has fluctuated frequently this year. First, between June and July, after Shanghai returned to normal, the price of avocados rebounded. Then, in September, at the end of the season of Peruvian avocados, because the shipment volume decreased by a certain percentage compared with the end of the season last year, there was a short-term shortage in the market, and some market hype caused a wave of rising prices.”
According to Will, taking 4KG/box avocados as an example, the price in early September was ￥110-￥120/box, and by the end of September, it had risen to ￥200/box, an increase of up to 65%-80% within a month. Compared with the same period last year, the price was only ￥90-￥100/box. Since the end of September, due to the limited market acceptance and the batches of domestic avocados, the price has gradually dropped, and it is currently about ￥120-￥130/box.
According to the two of them, since the company's scale in the upstream wholesale of avocados is relatively mature, it will devote more energy to the downstream supply chain, including services, promotion and branding.
Doris then talked about the trends in the avocado market: "I believe that ready-to-eat avocados are the industry trend, especially for retail channels. Due to the characteristics of the avocado, in order to ensure the freshness of the arrival, imported avocados are generally picked when they are mature at 6-8, and then processed and transported. If it is going to ripen naturally, the probability of low-quality fruit will be high. Therefore, after the transportation arrives in China, the best way is to further ripen fruits."
Shanghai WoNong Import & Export Co., Ltd. is engaged in the direct sourcing of high-quality imported fruits, cold chain logistics management, distribution and brand management. The business mainly covers East China, and radiates to North and Central China. The company has built nearly 6,000 square meters of constant temperature fresh-keeping cold storage and packaging and distribution factories and is equipped with controlled atmosphere storage. Sales channels include wholesale markets, large retailers, and online e-commerce.
More information:
Shanghai WoNong Import & Export Co., Ltd
Ms. Doris Xu
Email: doris@shwonong.com
Mr. Will Xie
Tel: +86 15901906541
Email: will@shwonong.com