The first Chinese pomelos were unloaded in the port of Rotterdam in the second week of October. "Pinghe pomelo started from August 3rd week with medium flesh with 10,5 kg net weight per box, after 2 weeks exporters could be able to attain 11 kg net weight, which is most preferred by our European customers. Since the beginning of arrivals, demand in Europe is good, we were able to presell the containers before arrival. Getting preferred sizes is a challenge due to increased rain during the fruit development to harvest stage, which made the fruit grow bigger. Big-size Pomelo has no or less demand in Europe, this makes it difficult for the suppliers to selectively export the best suited pomelo (caliber 9-12) to Europe", reports Madhu Kalyapura Munikrishnappa, product specialist at Don Limon GmbH, based in Hamburg.
The large-calibre pomelos are now increasingly being purchased by importers at the Eastern European ports of Riga, Klaipeda and Constanta.
Extended transit times characterize market dynamics
Due to high purchase prices and freight rates, procurement costs were initially relatively high. Sea freight costs have fallen by around 50 percent since the start of the season, but according to the latest information, freight rates at origin are set to rise again. Meanwhile, ship delays are characterising the start of the pomelo season. Kalyapura: "The usual transit time from
Xiamen to Rotterdam would be 35 days via Suel Canal, but with the alternative sea route now it is 45 days via Cape of Good Hope. Other factors such as delays at the seaports often lead to additional delays of 10-15 days." Nevertheless, demand to date has been pleasing. "The demand for pomelos is usually high at the start of the season. In addition, many Dutch importers did not feel confident due to high freight rates and extended transit times and have imported fewer large quantities. This in turn could be a reason why demand remains high even several weeks after the start of the season."
In Chinese cultivation, there has been a strong trend towards red rather than white pomelos for several years, which is mainly due to the increased domestic demand for red pomelos. "Due to the shortage of small white pomelos, we expect the export season in this category to end early, by the end of January. We also assume that this trend will continue in the coming years. This means that the supply of white pomelos will probably continue to decline, while red pomelos will tend to dominate the market," Kalyapura adds.
An integral part of the winter portfolio
Don Limon has been importing and distributing Chinese pomelos for around a decade. Despite multiple challenges in cultivation and the sometimes difficult market conditions, the import volume has increased every year so far. "We would still describe pomelos as a growth product and are convinced of their further marketing potential. In line with our growing team and expertise, we are aiming to further increase volumes in the coming years. Although the pomelo has a relatively short marketing window, it has established itself as an integral part of our winter portfolio. Today, we supply both food retail and wholesale customers - including in Eastern Europe, Italy, and France - with pomelos under our own Don Limon brand. Due to the market developments already mentioned, we expect demand to remain high in the coming years compared to supply. As Don Limon, we are not ruling out the possibility of looking at other countries of origin in addition to China in the medium term," he concludes.
Photo credit: Don Limon GmbH
For more information:
Andreas Schindler
Don Limon GmbH
Hamburg Wholesale Market
Tel. +49 (0)40 - 3095499-0
Fax: +49 (0)40 - 3095499-60
[email protected]
https://don-limon.com/de/