Affected by the pandemic situation globally, the rise in international oil prices and the situation in Russia and Ukraine, many citrus products this season have experienced poor export volumes since they were launched. Regarding the recent export of lemons and pomelo, a citrus exporter in Shandong was interviewed by FreshPlaza.
Drought reduces lemon production, extends shelf life
The new season lemons have been on the market for over a month. Continued dry weather in southern China has reduced lemon production by nearly 20 percent. "Due to the continuous dry weather in the production area in August, the size of lemons is smaller than in previous years, and the output is 15%-20% lower than the same period last year, but the quality of the products has not been affected, and the shelf life of the fruit has been longer," the exporter said.
"In terms of exports, since this season's lemons were launched, although the order volume is still not as good as in previous years, with the decline in shipping prices, the overall export volume of this season is expected to be higher than last year's level. In terms of prices, the recent FOB price of lemons is 1,000 US dollars/ton. Ocean freight rates have been on a downward trend recently, so the cost of reaching the destination port is lower than for the previous quarter."
"The overall cost advantage of Turkish and Egyptian lemons is better than that of domestic lemons in China, but their disadvantage is that they are seasonal and can only have a supply window of several months. In contrast, Chinese ukulele lemons have a long production season and can uninterruptedly supply for 12 months. Although the sea freight rate has dropped, it is still at a high level. The competitive advantage of Chinese lemons this season is not large.”
The production of honey pomelo has been greatly reduced, and the price is the same as the previous season
Due to the lack of rain before the harvest of honey pomelo in this season, the fruit size is relatively small, and cracking occurs, resulting in a significant reduction in yield.
This season's honey pomelo export season is expected to last until the end of December. "Overseas markets are still the main customers for white pomelo, and form a small part of the demand for red pomelo. The recent export price has not been much different from previous years," said the importer. When talking about sales, he reported: "Although recent orders have increased slightly from last year, they are still much lower than normal years. In particular, some customers are not optimistic about the consumption power of Europe and have reduced their purchases."
A large part of the exporter's fruit is exported to Russia. "Although Russia has restored the export supply qualifications of some Chinese exporters, there are almost no ships that can dock in St. Petersburg, so they can only take trucks or railways, which are complicated and costly."
When it comes to expectations for the export of citrus products in the coming months, the exporter said, "It largely depends on the global economic situation. If the overseas market momentum continues to be weak, Chinese fruit exports will still face huge challenges."