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Growth in export demand may bring new opportunities

“Sales of Lunwan oranges are progressing slowly”

The Zigui region in Hubei Province stands as a significant hub for navel orange production in China, presently in the midst of the Zigui Lunwan orange harvest season. However, economic and climatic factors have led to a decline in Lunwan orange prices this season, dampening sales expectations.

Mr. Liu Faying from Zigui County Chengguan Trading Co., Ltd., specializing in Zigui navel oranges, lamented the challenging sales environment, citing factors like subdued market demand, domestic orange oversupply, and previous freezing damage impacting orange quality.

Freezing damage incurred at the end of the preceding year resulted in dryness in a portion of oranges. While sorting lines and experience aid in salvaging most affected fruits, a fraction remains unsortable, elevating the defective rate and thereby increasing costs for wholesalers and squeezing profit margins.

Contrary to output levels, the volume of Lunwan oranges in the market has dwindled compared to previous years. Liu attributes this phenomenon to existing inventory of earlier-launched oranges, leading to tepid market conditions where buyers lean towards lower-priced alternatives. Consequently, Lunwan oranges face diminished circulation and a price drop of approximately 30% to 40% compared to previous years.

In response, Liu advocates for stringent quality control measures for Lunwan oranges while preparing for the forthcoming Jiuyuehong oranges season in the latter half of the year.

Conversely, burgeoning export opportunities may inject vitality into Zigui navel oranges. Export demand has surged, with the company witnessing increased export volumes. Catering to diverse preferences, Zigui navel oranges, including Newhall for cost-conscious markets like Thailand and Malaysia, and Zhonghuahong and Heimeiren ("chocolate oranges") for discerning markets like Singapore and Hong Kong, offer a range of choices.

In addition, Liu mentioned another challenge faced by Zigui navel oranges: "Freezing damage is very harmful to citrus. Zigui is a mountainous terrain, and the anti-freeze measures that can be achieved in the plains are not applicable to Zigui. Therefore, how to strengthen anti-freezing damage measures and improve skills in this area is the most urgent and challenging issue."

Beyond navel oranges, the company also deals in summer oranges, blood oranges, Murcott, tangerines, and other varieties, further diversifying its offerings.

More information:
Zigui County Chengguan Trading Co., Ltd.
Contact person: Liu Faying
Tel: +86 18307179771
Publication date: