China’s fresh fruit import market has been relatively robust in the run-up to Chinese New Year, as adverse weather in growing regions around the world keeps a lid on supplies, according to key importers.
Jason Bosch of Shanghai-based importer Origin Direct Asia told Fruitnet.com that supply volumes of a number of key items have fallen short of expectations, resulting in a “surprisingly strong” market.
Imports of South African grapes have been one of the worst-hit by adverse weather this year, he noted. “The South African grape season has been very disappointing,” said Mr Bosch. “Early volumes of white seedless were very inconsistent on sizing, and not many good XL, ‘China-quality’ grapes were packed. Then heavy rains caused some flooding, and this was followed by a four-day heat wave just after the New Year, which all contributed to a reduction in volumes.'
South African table grape industry body SATI has twice downgraded its estimate for the current season crop. Latest indications suggest volumes could come in between 46m and 49m cartons, as much as 5m cartons short of original estimates.
On a brighter note for South African grapes, the industry has enjoyed a virtually empty market in China on coloured varieties such as Crimson Seedless, Mr Bosch said. “Returns have been extremely high, which in my opinion will not be matched by other markets like the UK,” Mr Bosch told Fruitnet.com. “Growers with new varieties such as Starlight that came to Asia this year will have reason to celebrate as prices were some of the highest I have seen on a 4.5kg carton of grapes.”
As ever, Red Globe has been one of the most sought-after items among buyers for Chinese New Year, together with cherries, which are a rising star on the China market.
Tony Lin of One Trade told Fruitnet.com that most buyers had been focusing on these two items, with other products moving slowly due to cold weather.
Peruvian grapes prosper
Lower availability of California Red Globes has given impetus to sales of new-season Peruvian Red Globes, according to Mr Bosch.
“The first Peruvian volumes seem to have done very well and prices are up dramatically from last season,” he said. “The Peruvian season appears to be later than last year so volumes are limited, but the Peruvians are making an impression year-on-year on the market. They are really improving the quality of Red Globes packed for this market and shipping the kind of quality this market wants.”
Cherries’ star continues to rise
Reduced volumes on many major fruit import lines have also allowed cherries to shine this year, according to Mr Bosch. While an initial influx of Chilean airfreight arrivals dragged down the market in November and raised fears of an avalanche of seafreighted product, volumes again fell short of expectation and prices have held up.
“Chilean export estimates have been downgraded, which has also been a result of the rains in Chile and while no one wishes damage on a producer, this has taken pressure off the market,” he told Fruitnet.com. “Although returns are lower than last year’s good season, growers with high-quality fruit are still happy with their returns.”
Australia and New Zealand have been conspicuous by their absence from the cherry market, further aiding Chile’s cause. Indeed, limited availability and high prices again appear to be impacting on supplies from both sources, with unfavourable exchange rates and adverse weather causing setbacks.
Washington apple prices up
Imports of apples, one of the more mainstream lines for Chinese New Year, have also been characterised by lower supplies and higher prices. “Prices of US apples are up by as much as 30 per cent; the supply volumes were amended downwards and there is lower availability.”
Nevertheless, export figures from the Washington Apple Commission show volumes to Hong Kong/China tracking well as of the end of December. Shipments to Hong Kong were up by more than a third year-on-year at 1.1m cartons, while China registered an 18.5 per cent gain, receiving 108,500 cartons.
“Even though there is a lack of large, well-shaped Red Delicious this season, shipments to China have been phenomenal so far, which reflects the strength of their economy,” said Randy Eckert of exporter Yakima Fresh.
Cost crunch for dragon fruit
Vietnamese dragon fruit is another popular item in China for the Lunar New Year festivities, but Mr Lin noted that higher costs were crimping sales. “The Vietnamese dong is stronger than before and the cost of living has risen in Vietnam, so there are many times when the cost of the goods exceeds the selling price,” he told Fruitnet.com. “This has been going for the past year. It’s a tough market.”
As well as adverse weather in production areas affecting supplies, cold temperatures in China are a factor in the marketplace. Mr Lin noted that northern-based buyers have been planning their procurement and logistics earlier this year for fear of encountering bad weather during transportation.
