Yields have increased across China’s main grape production areas, but strong activity on the domestic market is driving prices high, making export to some markets difficult and unprofitable.
Volumes of Red Globes from Yunnan and Xinjiang have increased significantly; by five or six times in Xinjiang, according to Gavin Lu of Shenzhen Yuanxing Fruits Co.
“As for quality, I can see it is similar to last year, except that overall size for Yunnan Red Globe is smaller this year, while Xinjiang Red Globe is bigger,” he told Fruitnet.com.
Xie Jinshan of Shenzhen Gold Anda Agricultural Development Co said heavy rain in some of the main production areas had an impact fruit quality and had lowered the commodity rate.
The boost in the domestic market was having an impact on export supplies, according to James Han of Isnet China, who told Fruitnet.com the domestic grape price was outstripping export prices, which meant most of the Class 1 fruit was sold within China.
“The price for Yunnan Red Globes is higher than last year,” he said. “The main reason we think is China’s domestic market is very active, and this has pushed the price up and remained at a high level from the very beginning of the season.
“This has also laid a limit on exports, because foreign importers cannot afford the high price that is acceptable for the domestic market.”
Some exporters have reported significant drops in profit this year as a result of the high domestic pricing.
