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Indonesia may introduce fresh pear import quotas for China

The fresh pear harvest in Hebei is complete, with overall output down approximately 5% compared to last year. However, due to weather conditions, the proportion of high-quality fruit is notably low. Market fluctuations during the 2023 season caused losses for some traders, leading to lower inventory levels for fresh pears in 2024.

Hebei Xionghan Agricultural Products Co., Ltd., a leading fresh pear grower, processor, and exporter, provided insights into the current export market. Manager Li, the company's sales manager, shared, "Export volumes have been relatively stable recently, largely driven by returning customer orders and preparations for Christmas. There hasn't been a significant change compared to the same period last year. Notably, this year we've received more orders from European and American markets, with shipments moving faster and inventory depleting at a quicker pace."

Li highlighted shipping costs as a potential challenge for exports. "As we enter the peak export season, demand for Christmas-related shipments from overseas importers has surged, driving up shipping costs, particularly on Asian and European routes. Southeast Asian routes are expected to see a 90%-100% increase, while European routes may rise by about 30%. Conversely, South American shipping costs remain stable, and North American costs have slightly decreased, so these regions are less affected."

Discussing the impact of rising shipping costs, Li noted, "We are currently working overtime to fulfill orders for North and South American markets. While exports to Europe are slightly affected, customers are compelled to accept higher prices due to the season. In Southeast Asia, where price sensitivity is higher, some customers have reduced orders, while others have increased them to hedge against further shipping cost hikes. Overall, shipment volumes remain stable, and we are closely monitoring this market."

Li also addressed Indonesia's potential fresh pear import quota policy, expected to take effect in January next year. "This policy has raised concerns among traders eager to sell, resulting in local prices remaining relatively steady since harvest. Indonesian customers have indicated that the quota system requires exporters to hold Global GAP certification, and quotas will be allocated based on certified areas. Unlike in the past, importers cannot import freely and must plan their quotas for the year. Some fresh pear companies are securing certifications, but those that do not meet the requirements are pessimistic about the Indonesian market. To mitigate this, some traders may export large quantities of fresh pears in December, anticipating importers will stockpile to counter the new restrictions. As a company certified with Global GAP for 16 consecutive years, these changes have minimal impact on our operations." Looking ahead, Li remarked that inventory levels would play a crucial role in shaping the fresh pear market in the first half of next year.

Hebei Xionghan Agricultural Products Co., Ltd. also participated in the Asia Fruit Logistica in Hong Kong. "This year, we introduced order-based planting tailored to European and American customers who demand high-quality fresh pears with strict limits on pesticide residues. By collaborating on planting management plans, we can supply pears that meet these stringent requirements and ensure their exclusive availability," Li concluded.

More information:
Hebei Xionghan Agricultural Products Co., Ltd.
Li Xixi
Tel: 0086-17503202183