The lemon harvest of the new production season will come to an end in late February. The cost price of lemons is rather high this season. In addition, the rising shipping fees affect the eagerness of buyers, and so the export volume of Chinese lemons significantly declined compared to previous years. Mr. Zhang, director of sales at Jining Green Stream Fruits & Vegetables Co., Ltd., recently talked about conditions in the domestic market and the export market.
There are two reasons for the high cost price this season. First, low temperatures and unexpected cold currents last spring affected some of the lemon trees. Second, some growers have difficulty keeping up plantation management during the pandemic. That is why the overall production volume declined this season. The decline is estimated at 30%. And with a decline in supply, the price went up.
Around 60%-70% of the Chinese lemons are destined for the domestic market. The price of unprocessed lemons is now around 3-4 yuan [0.47-0.63 USD] per 0.5 kg. The price is much higher than in previous years, but market demand is not very strong. "Domestic sales channels include restaurants and beverage stores, but the rate of lemon consumption in beverage stores has gone down since the beginning of winter, and that further weakened market demand," explained Mr. Zhang.
Chinese lemon growers mainly produce Eureka lemons, but their Eureka lemons are not as juicy as the Eureka lemons from Turkey and Egypt. Still, there is market demand for Chinese lemons as they endure storage well. The main export markets for Chinese lemons are in Southeast Asia, the Middle East, and Eastern Europe. "The export market for Chinese lemons has been depressed for nearly two years now. There are several reasons. First, the price of Chinese lemons is higher than the price of Turkish, Egyptian, and Chilean lemons. That means China no longer enjoys a price advantage in the international market. Second, the high shipping fees are further weakening China's competitive advantage," said Mr. Zhang.
"When the price of Chinese lemons is low, Chinese exporters occupy a sizable portion of the markets in the Middle East and Eastern Europe, but when the price of Chinese lemons goes up, overseas buyers switch to Turkish and Egyptian suppliers. And then there is no place left for Chinese lemons," explained Mr. Zhang. "At the moment there is only a small demand volume from the Philippines. In all other markets the order volume is depressing."
In addition to lemons, Jining Green Stream Fruits & Vegetables also exports pomelo, ginger, and garlic.
For more information:
Mr. Zhang Shuhan
Jining Green Stream Fruits & Vegetables Co., Ltd.
WeChat: 008615853798811
WhatsApp: 008615853798811
E-mail: [email protected]