As South East Asian countries ready to usher in the Year of the Rabbit later this week, reports filtering in from fresh produce importers across the region point to generally positive sales in the run-up to the festivities.
Thailand appears to be one of the standout performers, with strong uptake from wholesale buyers driving up overall sales volumes on imported fruits by around 20 per cent versus last year, according to major importer Thongchai Intertrading.
“The situation for the Chinese New Year festival is so good,” the company’s Woradech Chaiworapoj told Fruitnet.com. “The wholesalers have bought huge volumes of fruit like Chinese Fuji apples and pears, Red Globe and Ralli Seedless grapes from Australia, navel and Shatang oranges from China and cherries from Chile and New Zealand.”
As usual, Chinese Fuji apples were the top mover in terms of sales volumes in Thailand, followed by Red Delicious and Royal Gala apples from Washington State, Mr Chaiworapoj added, but he noted a scarcity of Red Globe grapes this year.
Washington bears fruits of Chinese Fuji shortage
More general reports from the South East Asian region, however, point to a shortage of Chinese Fuji apples this year that has in turn created more opportunities for apples from alternative suppliers such as Washington.
”We’ve had strong sales in South East Asia this season,” noted Rebecca Baerveldt-Lyons of the Washington Apple Commission. “Chinese production is down and prices are up, in some cases on a par with Washington prices, so importers are choosing to bring in more Washington fruit. We are seeing concerns regarding food safety issues on Chinese apples causing increased interest in our apples in some markets, notably Vietnam.”
Pham Minh Nghia of Vietnamese import broker NC Group confirmed that Washington apples were benefiting from the Chinese shortfall, with strong demand kicking in three weeks before the festivities.
“We saw a sudden sales surge in the northern market centred on Hanoi for Washington apples with good demand for new varieties such as Ambrosia, Envy, Fuji. There was also more interest in pears as people are after more flavoursome alternatives to the ever-present Royal Gala apples,” he said.
The trend seems to suggest that the Hanoi market, which usually has a 20 per cent share of Vietam's fruit import sales, is becoming a stronger consumer market than Ho Chi Minh City (with an 80 per cent share), where the focus remains on gift sales, according to Mr Nghia.
In addition to the strong run in Vietnam for apples, he noted that the market picked up a week before Chinese New Year for grape arrivals from South Africa (Red Globe and Midnight Beauty) and Peru (Red Globe) as well as for cherries.
The supply shortage and high pricing on Chinese apples has also caused problems for Indonesian importers, according to Hendry Sim of Laris Manis Utama. “The market for Chinese apples is not good, and it’s been bad for almost a month,” he told Fruitnet.com. “The buying price is just too high, almost on a par with Washington Red Delicious.'
Mandarin prices high on shorter supply
Mandarins, another must-have item in many South East Asian households for Chinese New Year, have also been in more limited supply this year, largely due to shorter crops in China.
Koay Swee Aik of Malaysian importer Chop Tong Guan says the Chinese mandarin crop is down by around 30 per cent, which has pushed up prices.
“The total import volume into Malaysia is down by 20 per cent at least,” said Mr Koay. “While the market is stable, there’s not been any rush for mandarins, which is surprising because usually when there is a shortage of this kind, there will be a run. However, the good news is that the price remains stable and there won’t be surplus stocks left in the market.”
In Indonesia, Mr Sim noted that while some mandarin varieties were performing well, Nanfeng mandarins were having a tough time. “Nanfeng is doing terribly this year due to the very high pricing,” he noted.
Mandarin sales in Singapore, meanwhile, have been 'brisk', despite higher prices, according to Tony Tan of Singapore Fruit Importers & Exporters Exchange. Movement has also been spurred by the city-state’s two Integrated Resorts (IRs), which have this year chosen to give away mandarins to hotel and casino guests for Chinese New Year – an initiative that involves more than 100,000 pieces of fruit.
Indeed, Singapore’s robust economy, which grew 14.7 per cent last year, appears to be rubbing off on consumer sentiment, a factor underlined by sales of marine products this year. “Most abalone, especially the established brands, has completely sold out despite prices being 10 per cent up on last year,” said Mr Tan.
Back on the fruit deal, Mr Tan says black seedless Midnight Beauty grapes from South Africa have been one of the best performers for Chinese New Year. “Even the small islands in Indonesia now prefer this variety compared to Flame Seedless,” he added.
High-value lines lie low
Key high-value lines for Chinese New Year gifting, such as cherries, mangoes and stonefruit, have had a difficult year in terms of supply, meanwhile.
“New Zealand and Australian cherries are down in volume and the quality this year has been compromised by bad weather,” said Mr Koay. “This affects the movement because those who buy cherries are prepared to pay a premium but they expect high quality.”
Retna Malar of Malaysian marketing consultancy All About Produce also reported lower supplies on mangoes, nectarines and peaches, while adding that the Korean persimmon season wrapped up early.
Availability of grapes has also been more limited this year, largely owing to the timing of the festivities falling unfavourably for key suppliers such as the US and Australia. “South African grape prices were hovering at a higher level this time compared with last year,” added Ms Malar.
According to Mr Tan, Korean strawberries have not performed as well in Singapore this year because of high prices and weaker quality owing to adverse weather. But Ms Malar said they’d been selling widely both at retail stores and night markets in Malaysia. “The eating quality is very good this year and the shelf life is also strong,” she noted.
She also singled out blueberries, tangerines and Washington apples as items performing well in Malaysia.
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