The imported avocados in the Chinese market in the first half of the year were mainly produced in Peru and Kenya. This year, the avocado market has been declining since May, and it is still very sluggish. During this period, avocados continued to arrive in large quantities.
"According to past experience, the price of avocados usually starts to rise as we approach the end of the production season, but the current market has not yet improved." Imported avocados are the main product of Yiding International Trading Co., Ltd., and Mr. Yin, from the company, said: "In the recent market, taking a box of 4kg Peruvian avocados as an example, the price of the top-quality ones is about ￥50-￥60/box; while in the same period of previous years, the lowest price of ordinary ones was already more than ￥80/box. This situation has continued since June, with only a slight rise for about a week in between."
"The quantities arriving are too much, and the quality is not as good as before, which is the main reason for the sluggish market," Yin explained. "This year's volume of imported avocados has doubled compared to before. At peak times, more than 100 containers arrived in the Chinese market every week. Compared with previous years, the arrival of 20 to 30 containers per week has increased rapidly, so it is difficult for the market to digest. Secondly, the avocados arriving this season have many quality problems, such as black spots, softening, and problems with the peels, which further affect the price. In addition, the volume of Kenyan avocados has increased significantly this year, but the quality is not as good as expected, and they are relatively intolerant to storage and need to be sold as soon as possible, which will also affect the overall price of avocados."
Regarding the reasons for the large increase in the overall arrival volume, Yin believes that, first, the performance of imported avocados in the European market is not satisfactory, and many merchants have transferred the volume to the Chinese market; second, the short-term strong demand at the beginning of the production season affected the merchants' judgment on the market. "The Peruvian avocado production season started in April. At that time, due to the low arrival volume at the beginning of the production season, the market went up, about 30% to 40% higher than in the same period. Therefore, many merchants believed that the market demand was high and immediately put in large quantities. In addition, some merchants who originally sold other products joined the avocado sector, and some avocado brands that were originally sold in other regions were also put on the Chinese market this year. Therefore, the volume of arrivals has increased greatly, and the market cannot bear it."
When it comes to his views on the market outlook, Yin estimates that it will be difficult to make a significant improvement: "At present, the arrivals are still continuing, the quality has not improved significantly, and the overall consumption power of the market is not good. Coupled with the recent heavy rain in the north, fewer merchants started to purchase the products. It is difficult for us to influence the price; all we can do is strictly control the quality. On the other hand, there is not much publicity about how to eat the avocado or its health benefits. In China, the consumer interest is still concentrated in first and second-tier cities, in such areas as the catering industry and teashops, or as meal replacements for white-collar women, and as infant food, so it's a narrow audience. The Chinese market does have potential, but it needs to be developed gradually, and it will take time for products to be widely accepted by the market."
Yiding International Trade Co., Ltd. is mainly engaged in importing Peruvian avocados, and Chilean cherries. The sales areas are mainly Guangzhou and Shanghai.