Singapore’s fresh produce trade has experienced a difficult few months as consumers rein in their spending.
“The market’s been generally slow ever since Chinese New Year,” said Daniel Tay of major importer Hupco. “Some people say it’s due to people’s concern over the economic crisis.”
Tony Tan of Singapore Fruit Importers & Exporters Exchange noted the same trend, adding that sales remained sluggish even during the Ching Ming Festival or Chinese All Souls Day in April, which is usually a boon for demand.
“The economy’s doing okay but inflation is still high at rates of 3.5-5.4 per cent as compared to 0.5-2 per cent in the past,” said Tan. “Tourism is growing but the fruit trade hasn’t picked up. This may be due to the financial uncertainty in Europe and the sluggish stock market here. People are tending to be thrifty.”
Unsurprisingly, demand for higher value items such as stonefruit has slowed, according to Tay, but Tan said sales of core products have also suffered.
“The market’s been exceptionally poor for oranges. Many importers here got stuck with California navels and demand for Chinese navels weakened with low selling prices,” he told Asiafruit. “Sales of grapes from the Southern Hemisphere were also disappointing unlike previous seasons. Apples have been doing okay.'
Amid the more frugal consumer sentiment, Thai mangoes and lychees have been performing well, backed by heavy crops and competitive prices, according to Tay.
With importers now gearing up for the US stonefruit deal, there are some questions over how the recent hailstorms in the San Joaquin Valley will impact on supplies, and whether this will generate any openings for alternative exporting countries.
“There may be some disruption on the sizes and quality,” acknowledges Tan. “This could provide an opportunity for some European stonefruit to forge a presence here, especially with the financial crisis in Europe leading most grower-packers to look further afield. However, they may not be able to fill the gap if they’re not so versed in the consumer requirements here.”
One factor working in favour of newer-to-market suppliers to Singapore is the trend among consumers to seek out novelty and variety. “Nowadays, consumers are looking for new varieties of fruit,” said Tan. “They’re not satisfied with just basic items such as Royal Gala or Chinese Fuji apples, they go for exotic fruits such as yellow dragon fruit or organic Juliet apples.”
For a full report on the Singapore market, see the June edition ofAsiafruit.
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