Pricing of yellow dragon fruit shipping from Ecuador to the U.S. will likely strengthen again next week after China’s Mid-Autumn Festival (also known as the Moon Festival) has finished, an event that starts today.
Late last year, China finally approved the shipments of yellow dragon fruit from Ecuador and shipments largely began in January of this year. It was anticipated that shipments of the fruit would ramp up for the festival, which this year runs until October 6th and also coincides with a national holiday in China on October 1 (the two are often celebrated together). However, China’s recent economic slowdown has impacted demand for the fruit and in turn, some importers in the U.S. benefited.
“This week yellow dragon fruit was shipped at a cheaper price and next week it will go up again because it will be back to normal. As you know, price is the key to expanding the market,” says Elena Kong of Love April, a Los Angeles-based distributor.
Duty as well
While the state of the economy in China is a challenge for exporters, another issue is the higher duty on yellow dragon fruit from Ecuador--as much as 30 percent, which could be seen as a protective measure for China’s yellow dragon fruit growers.
“People in China aren’t buying a lot of yellow dragon fruit right now. Before this, the middle class could try expensive fruits for something like the Moon Festival but now they’re not buying it,” Kong says.
As pricing strengthens, the high season for yellow dragon fruit from Ecuador is ahead. “Usually it’s at the end of December but this year it will be at the end of January because of weather conditions,” says Kong. “There will be a lot of fruit in January.”