"Since the beginning of this year, chestnut product prices have declined due to changes in the overall consumption environment. Many chestnut suppliers and distributors have reduced prices to boost sales, which has significantly impacted chestnut production companies," explained Manager Yue from Qinhuangdao Yanshan Chestnut Co., Ltd. in China.
"Chestnut sales have dropped significantly. Unlike last year, where high raw material costs reduced market demand, this year's overall consumer willingness to purchase is sluggish. For example, sugar-fried chestnuts, which were more popular in previous years, saw their sales cycle extend for over a month post-Spring Festival. This year, however, sales plummeted sharply after the Chinese New Year, a rare occurrence in recent years. It's estimated that chestnut product sales, being non-essential items, will continue to decline for an extended period, leading to further price drops."
Yanshan Chestnut is primarily engaged in chestnut exports, with Japan as its main market. The company expects a decline in total export volume this year. "Firstly, global economic changes are affecting sales. Secondly, currency depreciation in some Southeast Asian countries, particularly Japan, has led to rising prices of imported goods. This price pressure directly impacts chestnut sales."
Right: Diced chestnuts.
Regarding the new season's chestnut growth, Manager Yue noted that from May to early June this year, abundant rainfall in the Yanshan Mountains and other areas led to strong new growth and a good flowering and fruiting rate. If no major natural disasters occur, chestnut production this year is expected to be slightly higher than the past two years, with purchase prices dropping accordingly compared to last year.
Qinhuangdao Yanshan Chestnut Co., Ltd. focuses on the purchase, storage, processing, sales, and export of chestnuts. "Considering market demand, we have expanded beyond traditional chestnuts to include the development of chestnut fillings, such as diced chestnuts for the baking industry. Sales in this segment have been quite promising," added Manager Yue.
Manager Yue