The Chinese market for imported fruit has performed reasonably well considering increased sendings in the lead up to Chinese New Year.
Origin Direct Asia managing director Jason Bosch told Fruitnet.com the Chinese market has performed adequately considering the variety and volume of produce that has been entering the country.
US grapes have been disappointing, however, he said with returns hovering around Yn200 per carton. “I think that has more to do with weaker fruit than it does with the market, as high quality fruit has been making very impressive returns with brands like Royalty and Prima going as high as Yn310 Yn320,” he added.
Early season grapes from Peru were disappointing and suffered from inconsistent quality, said Bosch. “Berry size was a little small and irregular and the colour was dark so US fruit was still preferred and Peru struggled to get near the RMB200 mark. But in recent weeks, since mid December, the quality from Peru has really improved and so have the returns, which shot up to Yn240 - Yn250 and started putting pressure on the US fruit.”
Arrivals of fruit will continue to peak in the lead up to the festival, he said. “More and more Peruvian fruit is going to start arriving with growers trying to capitalise on the pre CNY market and hopefully we will see a strong market over this period,” said Bosch.
“Once again it is very evident that buyers are willing to pay huge premiums for great quality fruit and there is very little interest in weaker fruit no matter how much you discount it,” he warned.
Sales of Chilean cherries have performed well to date, said Bosch, considering the increase in sendings from the South American nation this year.
Whether the Chinese market will be able to handle the arrivals expected in the coming weeks is yet to be seen, he added. “The first sea freight has arrived and this week is expected to see about 200 sea-freight containers and next week up to 900 containers are expected,” said Bosch. “It is going to be very interesting to see what will happen, I hope people are ready to start eating a lot of cherries.”
Meanwhile in Vietnam Pham Minh Nghia of NC group says demand for both domestic and imported fruit has been low, which he attributes to a general slow down in the economy there.
He is hopeful, however, sales will increase in the week leading up to Chinese New Year.
“Consumption is still focused on table grapes and in particular the Red Globe and Autumn Royal varieties. However, we are also seeing a higher demand for cherries to serve the high-class market for gifting,” he added.
There are some positives in the industry at present, he pointed out, with the state government taking steps to control currency fluctuations and reduce interest rates.
“From 2011 the exchange rate has been strictly controlled by the state bank, which helps allow imported fruit to be sold at stable prices,” he said. “In 2009 and 2010 the exchange rate jumped crazily between November to January.
“High inflation and bank interest rates of 15-20 per cent per annum are still big obstacles for all businesses, though the state bank is looking to reduce interest rates down to 10-12 per cent this year.”
No comments yet