This is the peak period of the sales season for honey pomelo from Pinghe in China. However, export is complicated due to a global transport crisis with high shipping costs and a shipping container shortage.
Many traditional honey pomelo exporters have adjusted their strategy. They have shifted their attention to the domestic market instead. Mr. Wen, a spokesperson for the specialized honey pomelo grower and exporter Pinghe County Lipeng Fruit Industry, recently talked about current conditions in the Chinese honey pomelo industry.
The overall production volume of Pinghe honey pomelo is slightly smaller this year compared to last year because the honey pomelo orchards in Pinghe suffered from several days of strong winds and excessive rainfall during the blossom season. However, the product quality is excellent. As plantation technology continues to improve, the only real factor is the weather. The production volume and product quality have been quite stable in recent years. The harvest season began two months ago, but there are still honey pomelos on the trees that have not yet been harvested.
"The greatest challenge for honey pomelo export is the rising shipping costs. Shipping one container from Xiamen to Europe already costs around 13,000-14,000 USD. The product value of honey pomelo is relatively low, and the rising shipping cost has a huge impact on honey pomelo export. In addition, many markets have been hit hard by the Covid-19 pandemic. Overseas market demand is often not strong enough for overseas importers to pay the high cost price," said Mr. Wen.
"The European clients with the strongest demand for honey pomelo are also the clients with the strictest standards for the amount of residue from agricultural chemicals that is allowed. These clients have a good reputation in their own market, and they have a strong competitive position. They are often able to afford the high cost price. That is why we have paid particular attention to limit the residue of agricultural chemicals. We are able to put our clients at ease with high-quality products and services that meet their specific requirements."
When asked about his predictions for the last stage of the production season, Mr. Wen replied: "This has been a challenging year for everyone in the honey pomelo industry, from planters and exporters to wholesale traders and retailers. We all struggled. Many exporters shifted their export pomelo to the domestic market. Under regular conditions the peak period of domestic honey pomelo sales falls in September and October. The market is currently flourishing, but there are also still many honey pomelos on the trees that have not yet been harvested. I expect the price to come down after National Day [1 October]. Market prospects for the last stage of the season do not look great."
For more information:
Mr. Wen Mindong
Pinghe County Lipeng Fruit Industry Co., Ltd.
Tel.: +86 592 5314 087
Tel.: +86 189 6511 5427
Website: www.flourishfruits.com
E-mail: [email protected]