"Following the conclusion of the Chinese New Year holiday, the global market continues to exhibit a strong appetite for frozen vegetables, particularly diced round onions, with order timelines stretching as far ahead as June." Rizhao Green Extension Food Co., Ltd primarily involved in the production and distribution of frozen vegetables, has experienced heightened shipment activity lately. According to Mr. Xu Chuangang (Ross), the company's sales manager, market demand is currently strongest in Europe, South America, Russia, and other regions. The purchased products encompass a range of frozen produce, including diced onions, diced carrots, garlic, and ginger paste.
Left: Frozen diced onions; Right: Frozen diced carrots
"The surge in European imports of frozen vegetables from China, attributed to diminished local crop yields at the onset of last year, has sustained robust demand. Current exports to this market remain steady, if not slightly lower than the previous year. Customers cite ongoing inflation in the European market as driving factors behind increased prices of locally sourced fresh vegetables, thus underscoring the appeal of Chinese frozen vegetables, due to their competitive pricing and quality standards." Ross also said, however, that some overseas clients express caution amid heightened inflationary pressures, exercising restraint in their order placements.
"In addition, the Red Sea crisis has prompted certain European clients to augment their purchases of frozen onions. Prolonged shipping durations have complicated the preservation of fresh red onions, whereas frozen onions, with a shelf life of up to two years at -18°C, remain unaffected in quality. Nonetheless, elevated freight costs exert significant influence on prices, with current rates to Europe averaging around US$4,000 per container, which is still markedly higher than the initial costs of over US$1,000 per container."
In other export markets, Ross observes a surge in demand for frozen vegetables in South America and Russia, with export volumes doubling, if not more, compared to the same period last year. "Particularly in the South American market, last year's drought in Brazil severely impacted local crop yields, driving up import demand. Chinese frozen vegetables, with their competitive pricing and alignment with market demands, are positioned favorably in this scenario."
Frozen onion prices remain elevated, although Ross anticipates a decline upon the commencement of Yunnan onion production by the end of March.