The production volume of apples in many production areas in China declined as a result of extreme weather conditions early last year.
The production volume of apples in many production areas in China declined as a result of extreme weather conditions early last year. As a consequence of this development the price of apples has been on the rise since harvest season last year, and the price is still rising. This situation is without a doubt a great commercial opportunity for farmers and traders, even more so because the apple market has been depressed for years. However, does this mean that everyone in the apple industry, in all production areas, benefit from this situation to the same degree and in the same manner? Several people in the industry provided their view on the apple market in China.
A spokesperson for an apple plantation and trade company located in Shaanxi stated that last year was a golden year like they had not had in the last five years. That company focused on wholesale markets and supermarkets in first- and second-tier cities throughout China for many years. Even though the overall supply volume greatly decreased, the price also greatly increased. For quite a long period apples created commotion in the market, which pushed the price up even further. All of this resulted in an impressive and satisfying sales value.
However, the spokesperson of another fruit export company located in Gansu offered a different viewpoint. The spokesperson explained that they mainly exported apples to overseas markets in recent years. This year, however, many overseas buyers took one look at the high price of Chinese apples and turned back. Under these circumstances the competitive market advantage of apples from the Southern Hemisphere, whether in supply volume, price, or product quality, became all too obvious. The relative disadvantage greatly reduced the export volume of Chinese apples. According to the spokesperson for this company, they had no option but to shift their attention to the domestic market.
These two viewpoints show that the high price affects companies in different ways. Supply to the fruit market is growing in volume and variety as temperatures increase. Consumers have more options to choose from, and it is uncertain whether the apple price will maintain its high position.
