This year, the lychee production season in Hainan has been delayed by approximately 10-15 days due to weather conditions, potentially resulting in an early end to the season due to reduced production. Feizixiao lychees from the Haikou production area are nearing the end of the season, while Lychee King recently entered the market.
Mr. Chang Zhongjie from Hainan Maosen Nongte Fruit Co., Ltd. is actively involved in lychee sales. He explains that adverse weather conditions during the flowering period, combined with an off year, have significantly reduced lychee production. Lychee King and seedless lychees have experienced the most drastic reductions in production. "Feizixiao's production, among the main varieties, has decreased by approximately 30-40%, with slightly smaller sizes compared to last year, but the taste remains unaffected. Lychee King, newly launched, is estimated to have only 10% of its previous year's output. Although seedless lychees are not yet available on the market, the planting area is already limited, and the production reduction is expected to exacerbate the shortage."
"The reduction in production has led to an increase in lychee prices. The average price of ordinary Feizixiao has risen by about 70% compared to last year. Lychee King's price, upon its launch, experienced significant market fluctuations. During the initial days, purchase prices fluctuated between ￥60-80 per kg, surpassing the previous year's range of ￥54-60 per g. The prolonged high prices raise uncertainty about future market developments. After entering the market, seedless lychees are anticipated to witness further price increases."
The rise in prices has dampened purchasing power, resulting in fewer orders for lychees compared to previous years. However, sales remain generally stable. "Initially, sales of Feizixiao were slow, partly due to Hainan lychees entering the market early, resulting in limited market volume. Subsequently, sales normalized. Lychee King is primarily used for corporate gifting, with customers placing orders as usual, albeit at reduced volumes."
It is noted that the current market price of Hainan lychees aligns with origin price changes, avoiding price inversion seen in other lychee markets. "Hainan lychees enter the market early, and some varieties are exclusive to Hainan, preventing price inversion. Due to high prices this year, profit margins are compressed to facilitate sales."
Specializing in various Hainan seasonal fruits, Hainan Maosen Nongte Fruit focuses on mid-to-high-end corporate gifts and wholesale business.