The market of Chilean cherries has fluctuated greatly in the past two weeks. In the third week, two weeks prior to the holiday, cherry sales and market activity in the wholesale sector rebounded, with prices steadily rising from the start of the week. After about a week of increases, the market gradually stabilized and began to decline last Wednesday, accompanied by a slowdown in sales. Taking the Lapins variety as an example, the price of the 3JD two-in-one specification fell to around ¥260 per box in the latter half of last week, representing a 10-15% decrease compared to the previous week.
According to traders handling Chilean cherries, the two weeks before the Chinese New Year represent the peak pre-holiday stocking period for traders, leading to increased demand. During this time, a large vessel carrying over 1,200 containers of Chilean cherries experienced delays, which caused the actual market volume to fall short of expectations, driving a significant increase in sales and market activity. "This large vessel is expected to arrive after the Chinese New Year, and the market situation for cherries following the holiday remains uncertain," one trader noted.
Last week, the final week before the Chinese New Year, saw a slowdown in sales. Traders attributed this to imbalances in supply and demand, as well as quality issues in the arrivals. "From a demand cycle perspective, one week before the Chinese New Year marks the end of the stocking period for traders, resulting in a natural decline in demand," a trader explained.
"Additionally, the quality of the arrivals was below expectations, which negatively impacted prices. This season, various factors such as adverse weather in production areas have led to overall quality being inferior to last year, particularly for mid-to-late-season arrivals. The main issues include softer fruit texture and more surface damage. Even some brands known for consistent quality in past years encountered problems with their arrivals this season. Furthermore, certain batches contained mixed large and small fruits or mixed specifications within a single pallet, and the volume of these inconsistent batches is larger than in previous years. Such inconsistencies force these batches to sell at lower prices. Alongside established brands, numerous new brands entered the Chinese market this year, some of which lack adequate quality control, leading to varying levels of quality. There is also a higher proportion of smaller-sized cherries this season."
The trader further highlighted the role of market purchasing power in the slowdown. Despite a large supply of Chilean cherries this season, market demand was insufficient. In third- and fourth-tier wholesale markets, sales slowed after purchasing during the third week, leaving unsold inventory and prompting cautious purchasing behavior going forward.
On a positive note, the Bing variety is currently selling well, attributed to its superior taste.
Given the enduring popularity of cherries in the Chinese market, production volumes are expected to remain high next year. "We hope production areas can develop new varieties that better align with market preferences in terms of size and quality. This would help achieve optimal pricing and ensure a more sustainable market," the trader concluded.