Demand for imported fruits remains depressed in China, with importers citing large volumes of competing local summer fruits and wet weather as two of the key factors affecting sales.
The slowdown began several weeks ago, and while there are some signs of recovery, most market sources do not expect sales to pick up until mid-July at the earliest.
“Two or three weeks ago, our Argentine pears were selling quite well,” said one trader at Jiangnan wholesale market, China’s major trading centre for imported fruits. “We could sell a whole container in a few days. Now it is taking three weeks to sell one container.”
Plentiful supplies of Chinese summer fruits, such as melons, lychees and stonefruit, are partly to blame for the downturn, according to importers. Indeed, while the recent flooding across large parts of China has hit vegetable crops and spurred much-publicised food price hikes, traders report no impact on fresh fruit supplies.
“There are so many local fruits available right now with fresh taste and low prices, it’s affecting the import market,” said Shi Chun Yu of importer Lantao Guangzhou.
Tropical fruits from South East Asia have also been pouring into the market at low prices, particularly durian and mangosteen. “Thai mangosteen is selling for only Yn80 per (8kg) carton right now,” said Kevin Chen of Goldland.
Hangover on grapes
But it's not just local fruits that have dragged the market down. Indeed, traders are still working their way through a huge influx of Chilean grapes that hit the market in May.
“There were around 600 containers of Chilean grapes that arrived in the space of 10 days, a lot of it rain-affected fruit,” said Jason Bosch of import company Origin Direct Asia. “This collapsed the market, and it’s never really recovered.”
According to Mr Bosch, a large percentage of Chilean grapes in the market are now selling at a loss. “The best quality fruit is only fetching around Yn180-200 per carton. The poor to mediocre fruit is selling for anywhere between Yn70 and Yn140 per carton, but if the price goes below Yn180, then you’re selling below cost,” he explained.
Prior to the onslaught of Chilean fruit in May, the market for Chilean grapes had been strong. “We’ve had a good run this year with grapes. Fruit from the US, Peru and South Africa all sold well and the start of the Chilean fruit also went okay until May,” he noted.
Once the current glut of late-season Chilean grapes clears the market, Mr Bosch believes conditions should improve for imported fruits. “We’ll start to see some turnaround once all these grapes are out of the market and the build up to the Moon Festival begins,” he predicted.
New season citrus struggles
The Moon Festival falls on 12 September this year, slightly earlier than 2010, and the onset of demand will be eagerly anticipated by citrus shippers from South Africa and Australia, whose season has got off to a tough start in China.
“The market’s not so good for South African navels and they’re currently selling for around Yn150 per 15kg carton on average,” said Mr Chen. “Nova mandarins have been doing okay. Their quality is more suited to the market here than the Australian Novas and Daisy mandarins we’ve been receiving, with firmer fruit and smoother skin – and the prices are more competitive.”
Mr Chen said the cost of Australian imports was “too high”, an issue compounded by the adverse exchange rates. “The Australian dollar has appreciated a lot since last season, while the quality of fruit from Australia’s competitors keeps improving,” he noted.
While Australia’s Daisy mandarins have performed better than their Novas in terms of appearance, Mr Chen said they still had issues with skin blemish and sugar levels. “The eating quality is poor and the brix levels are too low,” he said.
Buyers will be looking to switch over to Honey Murcott mandarins from Australia when they become available towards the end of July, he added.
Persistent rain has been another factor affecting fruit import sales, according to Mr Bosch. “The weather hasn’t helped – it’s been raining a lot in Shanghai over recent weeks and that drives people away,” he said.
Stable deal for US cherries
One of the few items to weather the difficult market conditions are US cherries, according to Origin Direct Asia, which has been receiving fruit from California so far. “US cherries are doing okay, and the market is very stable,” said Mr Bosch. “They only come in by air and at consistent prices, so it’s more controlled that the Chilean cherry imports, which are shipped using various methods `sea, sea-air or air` and under different pricing arrangements; some fixed price and some on consignment.”
Nevertheless, he pointed out that even US cherry prices had dropped sharply in the past few days, falling from Yn500 per (5kg) carton to Yn380 per carton, with some fruit even selling for just Yn320 per carton.
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