Over the past two months, the pricing of imported avocados from Peru has seen considerable volatility. This season, the earlier arrival of Peruvian avocados in the Chinese market triggered price fluctuations sooner than usual, accompanied by significant fluctuations in arrival volumes.
"In the Guangzhou fruit market from early to mid-March, a surge in Peruvian avocado imports, coupled with the subpar quality of some batches, led to prices plummeting to as low as ￥60 per piece (4 kg) or even lower. Subsequently, as arrivals tapered off, prices gradually rebounded to around ￥150 per piece, prompting accelerated sales. Recently, however, both sales and arrivals have surged again, prompting many buyers to express concerns over price risks and adopt a cautious stance in the second week of April," noted Mr. Yin, a prominent importer of Peruvian avocados.
Mr. Yin attributed the spike in arrival volumes to two main factors. Firstly, an inundation of avocados in the Shanghai market within a short span necessitated diverting some volume to the Guangzhou market, exerting pressure on local dynamics. Secondly, during the 6th to 9th week of this year, avocado sales skyrocketed, precipitating a corresponding drop in prices. Consequently, some fruit merchants suspended sales during that period, opting to await a market rebound before resuming, thereby contributing to the recent surge in volume.
"This is an unusual occurrence compared to previous years. Typically, the imported avocado market maintains relative stability from March to April, with prices usually beginning to decline by late April or early May. However, this year, price fluctuations occurred more than a month earlier," observed Mr. Yin.
He speculated that heightened market optimism this year led to earlier arrivals and the emergence of new avocado brands. While China's avocado market offers significant growth potential, consumption growth has been sluggish. A sudden influx of volume can disrupt the market and depress prices. Following the recent price downturn, many buyers have substantially reduced individual purchase volumes, preferring to increase purchase frequency to mitigate potential price risks.
Regarding overall avocado quality, Mr. Yin noted an improvement compared to last year, albeit at a normal level compared to previous years. However, variations exist among brands and batches.
In addressing the recent market turbulence, Mr. Yin emphasized their commitment to adhering to the original delivery plan and enforcing stringent quality controls based on years of experience and market research. "Following market fluctuations in delivery poses greater risks. Moreover, only consistent quality can sustain long-term customer relationships," he concluded.