China's citrus export season reached its peak just before the Chinese New Year holiday in early February, coinciding with a noticeable decline in prices. Since mid-February, citrus prices have witnessed a significant drop in the export market. Kyle Zeng from ShaanXi HoVo Import & Export Co., LTD, explained: "A delayed influx of Egyptian oranges, which had been held up due to the Red Sea crisis. These oranges have since arrived in various Asian countries ahead of schedule, contributing to an oversupply in the market when coupled with the arrival of other citrus varieties according to prearranged schedules."
The company primarily exports citrus to destinations such as India, Bangladesh, and Indonesia. Zeng noted, "The export market for domestic citrus showed promise from early December to mid-January but began to decline before the Chinese New Year. Currently, overseas markets are grappling with the surplus of Chinese citrus shipped pre-holiday, compounded by the sudden influx of Egyptian oranges, thus exerting downward pressure on citrus prices."
Among the primary citrus varieties exported this season is Wogan, with prices lower than the previous year. Zeng explained that heavy rainfall in Wuming, Guangxi, the main Wogan-producing area, has adversely affected fruit quality, resulting in decreased sugar content and surface smoothness compared to last year. Moreover, the abundance of large fruits this season, coupled with a decrease in small and medium-sized fruits preferred by the export market, has impacted pricing dynamics.
"The drop in prices for large fruits has had a cascading effect on small and medium-sized fruits," Zeng elaborated. "Additionally, the prolonged production season of the popular Papagan oranges has overlapped with that of Wogan, further influencing Wogan prices," Zeng noted a slight improvement in domestic citrus prices as the domestic market has recently begun stocking up on citrus.
In terms of exports, Zeng highlighted increased demand for Chinese oranges due to the delayed arrival of Egyptian oranges. "Before the arrival of Egyptian oranges, in response to customer demand, we increased exports of Gannan navel oranges, Zigui Lunwan oranges, and high-quality navel oranges from surrounding production areas," Zeng explained. "Customer feedback was positive, presenting an opportunity for these oranges, which were previously less sought after due to their higher price compared to Egyptian oranges."
Discussing changes in the export market, Zeng mentioned that Bangladesh's repeated tariff increases last year significantly reduced China's citrus exports to the country, with many shipments redirecting to the relatively stable Indian market. Additionally, Indonesia's last-minute announcement of import quotas before the Chinese New Year holiday impacted exports to that market. "We are actively seeking to expand into new markets and hope to mitigate the impact of trade barriers on exports," Zeng expressed.
ShaanXi HoVo Import & Export Co., LTD. deals in various products, including citrus, apples, grapes, pears, kiwis, and persimmons, with export markets primarily in Southeast Asia and the Middle East.