China’s pomelo exporters are finding it hard to source supplies at affordable prices this season as domestic demand pushes up farm-gate prices.
Lower production this year has combined with increasing consumption in the Chinese market for the large citrus variety, according to marketers.
Early-season estimates by the local government pegged production in the Pinghe region – the main pomelo growing area and the source of most exported fruit – at 600,000 tonnes.
But as the effects of rain during the pomelo flowering phase earlier this year have become clear, local sources told Fruitnet.com Pinghe is unlikely to hit that forecast.
For the national crop, pomelo production is expected to hit around 800,000 tonnes, according to Sarah McCormack of exporter Dalice Qingdao. “The total volume for the 2009 season was 1,000,000 tonnes,” she added.
Prices for the fruit have been steadily rising since the start of the season, which had already opened on a high note for domestic pricing.
“At present, pomelos are still keeping a high price and rising weekly,” said Vickie Lin of exporter Xiamen Bona. “`It’s` a very hard year.”
The pricing this year is on a feedback loop, according to Ms Lin. While the shortage of supply had initially boosted prices, the continued and steady rise of those prices are causing suppliers to hold onto fruit for better returns.
“Hot domestic demand is pushing the price up, and farmers `are` holding pomelos, expecting higher prices,” she told Fruitnet.com. “Of course, too high a price for export will make importers hesitate.”
The struggles of China’s exporters, however, have opened up opportunities for other pomelo suppliers, particularly to Europe.
Israel exports small volumes of pomelos and the Sweetie-branded pomelo-grapefruit cross to Europe.
“Although it is a niche product in our citrus industry, it is an important product in its growing region in Israel,” said Tali Shlomi, head of the Israeli Ministry of Agriculture’s Department of Market Research.
“Due to the competition with the Chinese pomelo, Israel is actually losing ground in the EU markets,” he told Fruitnet.com. “The export has downsized from around 5,500 tonnes in 2007/08 to merely 2,300 tonnes in 2009/10.”
With Chinese pomelos hitting European markets at higher price points and in decreased volume, further niche markets may open up for suppliers like Israel this season.
