The sales of imported apples in the Chinese market are ongoing, with a stable overall market despite a slight decrease in import volumes this year. Currently, inventory pressure on apple traders remains relatively low.
"The overall arrival volume of New Zealand apples is lower than in previous years. Some shipments failed to pass customs quarantine, resulting in reduced availability in the Chinese market, which has contributed to the market's stability," said Don Lu, Wholesale Market Manager at Yumsun Fruit.
"While the market remains stable, price differentiation is more pronounced than before. This year, New Zealand's Gala apples have outperformed others with high market recognition, stable prices, and strong returns. Although the price of Rose apples was low a few months ago, it has recently risen due to a decline in supply."
"In contrast, the prices of South African Fuji apples, especially first-grade ones, have remained low, and Chilean Ambrosia apples haven't performed as well as expected. The quality of locally-produced Fuji apples in China is high, with competitive pricing, leaving little advantage for South African imports. Additionally, while Chilean Ambrosia apples taste good, the lighter peel colour and some defects have made them less appealing to Chinese consumers, which has driven down prices."
Yumsun Fruit is the exclusive distributor of New Zealand's Sonya and Breeze apples in mainland China and also offers several other New Zealand brands, alongside apples from South Africa and Chile.
"This is our first year as the exclusive distributor for Breeze apples, and our third year representing Sonya. Our partners in other countries have also increased supply to us, leading to an over 80% increase in our overall apple import volume compared to last year," Don noted.
When discussing their strategy for sales growth, Don emphasized that their exclusive agency allows for early market forecasting and marketing planning, avoiding losses from price competition.
"We've developed effective operational models, including slowing down the release of containers in the wholesale market to stabilize prices and reduce losses. By predicting this season's supply, we could prepare our distribution channels one to two months in advance. In marketing, we've introduced new packaging and advertisements. For example, we launched small buckets for Breeze apples this year, which have delivered impressive results, making Breeze the standout performer in the Chinese market."
Looking ahead, Don expects the apple market to remain stable until the Mid-Autumn Festival and is optimistic about selling out their imported apple inventory by then. "With preparations underway for the Mid-Autumn Festival, most traders have minimal apple inventory, and demand is growing, so we have a positive outlook for the upcoming market."
Yumsun Fruit will be participating in Asia Fruit Logistica in Hong Kong from September 4 to 6, at Hall 3, Booth 3S32. All industry colleagues are welcome to visit and exchange ideas.
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Don Lu