The sales volume of Chinese apples has declined in the last two months since the outbreak of COVID-19 around Chinese Spring Festival [25 January, 2020]. The delivery speed in the Chinese fruit market slowed down as well. Most fruit traders in China still have large volumes of fruit in their warehouses. Manager Zhong of Baishui County Shenglong Fruit Industry Co., Ltd. recently analysed the current conditions in the Chinese apple market.
"Our sales volume has declined by 30% in the last two months since the domestic fruit market has suffered from the consequences of the COVID-19 epidemic. Although the purchase price in Shaanxi production areas currently shows a rising trend, the market price on the other hand is now falling. The general product quality of apples was not that bad during the last production season, but the overall production volume nearly doubled in comparison with the previous year. The relation between supply and demand drastically changed. The price of apples remained relatively low in the period leading up to Chinese Spring Festival [25 January, 2020]," explained manager Zhong.
"Now, however, the purchase price of top-quality apples is showing a recovery. Intermediaries in Luochuan production areas purchase top-quality #70 red Fuji apples from farmers for 2.7-2.8 yuan [0.37-0.38 USD] per 0.5 kg and sell them to visiting traders for 3.3-3.4 yuan [0.47-0.48 USD] per 0.5 kg."
"As for our export market, we mainly export the Qin Guan apple variety. The product quality of this variety is great and the price is reasonable, which makes the Qin Guan apple very attractive. The export price of Qin Guan apples is nearly 50% lower than that of other export apple varieties. The current export price is around 1 yuan [0.14 USD] per 0.5 kg. We mainly export our apples to the markets in various Southeast Asian countries. The peak period of Qin Guan apple export is in March and April. Our apple export has not yet suffered consequences from the global spread of COVID-19. The order volume and export volume are both still regular."
"We still have around 1-2 thousand tons of apples in our warehouses. However, we have regular supply channels to supermarkets, which means that we are not worried about being unable to sell our apples. As for distribution, the transport network in Shaanxi is already back to normal. The market conditions, however, are still far from ideal. Market demand is too small and delivery speed for offline sales channels is too slow. For online sales channels the situation is different. Our e-commerce platform processes a regular volume of orders."
Baishui county Shenglong Fruit Industry Co., Ltd. is located in Baishui county, Shaanxi. This company is specialized in the purchase and export of fruit. The company was established in September of 2008. All the products traded through Shenglong Fruit Industry have been GAP certified. Some of the products are also certified organic products.
For more information:
Manager Zhong
Baishui county Shenglong Fruit Industry Co., Ltd.
Tel.: +86 9136188880