China has been a leading exporter of apples for years, but in recent years Chinese apple export has taken a hit as various countries raised the import requirements, and then Covid-19 broke out. Shaanxi Tangsen Fruit specializes in fruit export, including apples. Mr. Zhou Junlin, CEO of Tangsen Fruit, recently talked about current conditions in the apple export market.
Apple processing factory
Export apples
"Chinese apple export already faced a number of challenges prior to the outbreak of the pandemic. For example, India prohibited apple import from China in 2017. And Russia temporarily halted the import of various fruits from China, including apples. The overall consumption of apples fell by nearly 50% as a result of these decisions. The outbreak of Covid-19 just made a bad situation worse. Overseas market demand for Chinese apples is falling. In addition, there is a shortage of shipping containers and shipping fees are 3-5 times higher than before the pandemic broke out," said CEO Zhou. (Right: Export apples)
This year a number of countries have relaxed their Covid regulations, so the circulation of people and products is growing, and market demand is recovering. The conditions in the export market are an improvement compared to last year.
According to CEO Zhou: "The export price of apples dropped last year, but product quality was less than ideal, so sales conditions were not great. This year the sales conditions slightly improved and the price went up. For example, one tone of small apples sold for 3,800 yuan [566 USD] last year, but now sells for 5,500 yuan [819 USD]. But even though orders have begun to come in, most companies are not yet making a profit."
Tangsen Fruit adjusted their strategy when the pandemic broke out. They shifted their focus from fruit processing to domestic e-commerce and supply chain services for supermarkets. At the same time, they also participated in live-stream auctions. This form of retail has become popular in the last few years.
"Although traditional sales involve larger volumes, the clients have strict requirements and we have little control. Direct sales involve smaller volumes, but when customers have problems, we can immediately jump in and solve them. We also benefit from brand formation for our own products. We tried live broadcasts for a while and discovered that we received one or two thousand orders on days when we had Luochuan apple broadcasts. And the return rate of customers is very high. The success of livestream retail in the agricultural market only depends on product quality. Brand formation and diversification in the agricultural market is our main goal now."
Export apples
Shaanxi Tangsen Fruit primarily sells apples, but the company also sells pears, kiwi fruit, winter jujubes, and cherries, as well as peppers, tea, honey, and bai jiu liquor. "We have the advantage of a strong supply chain, and we hope to find strategic partners with excellent retail channels or outstanding livestream channels."
For more information:
Mr. Zhou Junlin - CEO
Shaanxi Tangsen Fruit Co., Ltd.
Website: http://www.tangsenfruit.com
Tel.: +86 155 9172 7777
E-mail: 315679155@qq.com