Apple exports for the new season have begun. Taking the main product variety Fuji as an example, the overall quality is better than last year due to abundant rain. Because of production reduction and variety changes, prices are high this season. "Apple prices are very high this year, about 30% higher than last year, which affects export volume and competitiveness in the international market," said Mr. Kyle Zeng of ShaanXi HoVo Import and Export Co., Ltd. The company focuses on the export trade of fruits and vegetables, of which apples are an important category.
Regarding the reasons for the price increase, Kyle analyzed: "The apple market in the past five years was generally low, and many fruit farmers cut down trees and abandoned the planting due to poor economic returns. Since the year before last, some fruit farmers have cut down trees to replace new ones but replanting them takes time. Therefore, starting from last year, the production of mid to low-end apples has decreased. In addition, because the price was already high last year, fruit farmers were reluctant to sell in anticipation of the price. The difficulty in purchasing products from the production area caused the price to rise.
"Secondly, with the rise of domestic e-commerce in recent years, apple sales have increased in the domestic market, and prices have risen accordingly. Furthermore, planting in many regions has shifted from single farmers to large-scale operations by companies, and planting varieties have been updated. Some of the Gala and Fuji series grown are new varieties introduced from Europe and South Africa. The price will naturally rise as the quality improves, which indirectly drives the price of local Fuji."
According to Kyle, in the international market, the export price of apples from Turkey, Brazil, Iran and other places is relatively low. However, the current export price of apples from China is close to the high-priced South African apples, which lacks an advantage in comparison. Regarding response, Kyle said: "China is rich in fruit resources, and we are using other categories to fill the market share of apples, such as citrus, grapes, lemons, and grapefruits. In the past, apples accounted for 90% of our export share, but it has now dropped to 40%-50%. Our response strategy is to enrich product categories and explore more markets.”
Talking about market development, Kyle said that Chinese red grapes are very popular in the Indian market, and citrus is also popular, and India imports a large number of fruits. In addition, the company has opened up the Russian market this year and can export by land transportation. It is currently exploring the European market and trying to export grapefruit, lemon and other products.
“It is worth mentioning that the market is interested in new varieties of apples and is willing to try them even if the price is higher. For example, we recently exported a batch of new varieties of apples to the Nepali market at a price of USD25/box. The appearance and taste of this variety are ideal, and customers are interested in purchasing small quantities to test the market. "
ShaanXi HoVo Import and Export Co., Ltd. is mainly engaged in the fruit and vegetable export trade and has its own apple base and processing plant. The main products include apples, grapes, tangerines, pears, and plums. Export markets include Southeast Asia and the Middle East, and the company is currently exploring more markets such as Europe.