China is the largest producer of apples and the annual production volume is huge. Apple orchards are distributed widely across China. In recent years the cost price of plantation has gone up. In addition, after the outbreak of Covid-19, logistical challenges have had an impact on apple trade. The domestic apple market has been in a roller coaster of frequent fluctuations. Mr. Zhou Junlin, CEO of Tangsen Fruit, recently talked about current conditions in the Chinese apple industry. (Right: Luochuan apples)
"The Luochuan apples is an important apple variety in the Chinese market. This year the purchase price is around 4 yuan [0.60 USD] per 0.5 kg, which is around 50%-60% higher than the lowest price of 2-2.5 yuan [0.30-0.37 USD] per 0.5 kg last year. The main reason for this development is that this year the product quality of apples is regular, as are the conditions in cold storage facilities. The apple trees bore much fruit this year, although the fruit setting rate was low, the product quality was relatively good. In addition, the percentage apples suitable for commerce was rather high, and the average size was big. This is a great sign. Conditions have improved compared to the last two years."
Sugar Heart Fuji apples
Luochuan apple sales have encountered difficulties in the last two years. According to CEO Zhou, "the outbreak of Covid-19 caused financial loss for many apple traders. And a number of apple traders had to take out loans in 2021. They were low on funds by the time they would normally buy their apples. The number of buyers declined and so the price of apples dropped. Apple farmers had no option but to sell at market prices. Many of the apples were simply stored in cold storage or sold on the roadside."
Sugar Heart Fuji apples
"These conditions barely lasted for more than a week, but they took place during a key period in the season when traders purchase apples to stock their warehouses. Many apples were already close to 100% ripe by the time they were entered into cold storage. Apples are normally entered in storage when they are at most 80%-90% ripe. Completely ripe apples do not endure storage very well. Moreover, some of the Luochuan apples developed soft spots in June and July. As a result of these conditions, a number of apple traders lost all of their savings last year."
"After the price reached a low point, conditions improved, and some of the traders who purchased apples cheap were then able to make a reasonable profit when the price came back up."
Shaanxi Tangsen Fruit trades in a variety of apples, including Luochuan apples, Tianshui Fuji apples, Red Delicious apples, and Golden Delicious apples. The company has assets and supply chain connections in major apple production areas in Shaanxi, Shanxi, Gansu, and Shandong.
For more information:
Mr. Zhou Junlin - CEO
Shaanxi Tangsen Fruit Co., Ltd.
Tel.: +86 155 9172 7777