Data from the General Administration of Customs China (GACC) shows that the temporary prohibition on Taiwanese pineapple import stimulated market demand for Jinzuan pineapples from Hainan and Guangdong. Market demand exceeded supply and the price went up. But in April conditions returned to normal and the price subsequently dropped. Manager Zhong of Agrade Shanghai Co., Ltd. recently talked about current conditions in the Chinese pineapple market.
The GACC announced on the 26th of February that import of Taiwanese pineapples was temporarily halted. The announcement immediately led to speculation in the Chinese pineapple industry. Although the actual export volume of Taiwanese pineapples is not that great compared to the size of the Chinese pineapple market, still the sudden announcement caused much competition.
"Many pineapple traders immediately turned their attention to other markets for their supply volume. Some traders rushed to purchase Jinzuan pineapples from production areas in Hainan and Guangdong. Growing market demand for pineapples from Hainan and Guangdong quickly outpaced the supply volume. In addition, many importers suddenly expanded their purchase volume of pineapples from the Philippines. The Chinese market price of pineapples soared to around 150 yuan [23.09 USD] per box of 12 kg. After three weeks of peak sales, the price of import pineapples gradually began to come down again. The current price already dropped to around 65 yuan [10.01 USD] per box of 12 kg. A significant number of importers stands to suffer financial loss," explained manager Zhong.
When asked about pineapple market trends in the upcoming weeks, manager Zhong replied: "The peak period of the Jinzuan pineapple season takes place every year between March and May. The Philippines produces pineapples all year round. After the peak period is over, the market supply volume will significantly decline. That is when conditions will stabilize again. We hope the conditions will improve in the last week of May."
Pineapple farmers in the Philippines primarily produce MD2 pineapples. Although the flavor is not as good as the Jinzuan pineapple, the MD2 can be produced all year round and has a long shelf life. Furthermore, the MD2 has a better price-quality ratio. Apart from the Philippines, a few other countries such as Costa Rica and Panama also export pineapples to the Chinese market. However, South American suppliers have to ship their pineapples a long way before they reach China. This gives them a distinct disadvantage because the shipping time is long and the cost price of transport is high. That is why pineapples from the Philippines have a stronger position in the Chinese market.
Agrade Shanghai is a company specialized in fruit import. The company primarily sells fruit via wholesale markets in first- and second-tier cities, supermarkets, and via specialized fruit retailers such as Pagoda and XF Express, as well as large e-commerce platforms like Ding Dong Maicai.
"We think that competition in the Chinese fruit industry will only grow fiercer in the future. We make sure that our fruit has a great price-quality ratio, and in addition we invest in well-known brands with products of the highest quality. We hope to facilitate the import of top-quality, reasonably-priced fresh fruit and supply Chinese consumers with a rich and varied consumer experience," said manager Zhong.
For more information:
Zhong Hui - Manager
Agrade Shanghai Co., Ltd.
Tel.: +86 18521551556