The Lane Late navel orange, which goes on the market every spring, is a late-ripening citrus variety. It is well-known because of its good taste and has less competition from the same category when it goes on the market. As the main production area of Lane Late navel orange in China, Zigui County in Hubei Province has become one of the most advantageous production areas of domestic citrus, due to its geographical and climate characteristics.
"The output and quality of Lane Late navel oranges are satisfactory this year, but there are price speculations in the market, which keep the prices inflated, resulting in a price inversion between the market and the production area. If this continues, the worst result may lead to them being out-of-stock." Mr. Liu Faying from Zigui Chengguan Trading Co., Ltd. talked about it with FreshPlaza.
"Since the year before last, there has been "roasting" in the market, and it has become more prominent this year. In previous years, the land price of Lane Late navel oranges started from ￥4/kg, but last year it didn't rise to ￥8/kg until the end of the production season. But this year the starting price is already ￥6-￥8/kg, and it is about to break through ￥10/kg, and it is still rising. According to industry estimates, the price at the origin may rise to ￥16/kg. Where the overall output has not decreased significantly, the price has risen rapidly and by a large margin. "
"At present, the wholesale price in the market is almost equal to the price of the place of origin. The price of the place of origin will continue to rise. If the market price is too high, it will be difficult to sell, considering the market price also includes various costs such as labor and freight, The price inversion causes suppliers to lose money, and there are many counterfeit products in the market and other adverse consequences. On the market, other oranges are traded as Lane Late navel oranges. Because the cost of these substitutes is lower than the real ones, and it is difficult for consumers to distinguish the real from the fake ones, some merchants choose to buy substitutes. The impact of "fake products" on the market is what we are most worried about because it will ultimately hurt the genuine market for Lane Late navel oranges. "
Regarding how to deal with it, Liu said that there are currently no effective measures. "What we can do now is to control the timeliness of orders, give up some low-end businesses, and focus on high-end businesses that can generate brand premiums."
Lane Late navel oranges are usually on the market from April to June. Due to the climate of this production season and the characteristics of the "double February" solar term in the lunar calendar this year, the overall production season has been brought forward by one month. It will be on the market from March to the end of May. The taste is at its best in mid-April. It is understood that the production of Zigui Lane Late navel oranges this year is generally the same as last year, with better taste and sugar content, and relatively small size. They have been exported to Hong Kong and Singapore in recent years, and the export volume this year is higher than in previous years.
Zigui Chengguan Trading Co., Ltd. focuses on the processing and supply of Zigui navel oranges. It has its own orchard and processing factory. The annual production of the factory is about 15 million kilograms. The citrus products include Zhonghuahong, Eryuehong, Lane Late navel oranges, Jiuyuehong, and Newhall navel oranges. Sales channels include various e-commerce platforms, community group buying, wholesale markets, and supermarkets, supplying products of different specifications and packaging. The company mainly sells domestically and began exporting to the Singapore market this year.