Imported oranges have started to arrive in bigger volumes on the Chinese market. American import oranges are the earliest in the season, followed by Egyptian and Spanish oranges.
Currently, due to ample supply, there is heavy competition on the Huizhan import wholesale market in Shanghai.
Larger import volumes
In 2015, sales of import oranges from Egypt and Spain were particularly strong. As a result, more importers jumped in the gap this season. Last season, quite large volumes of Egypt oranges were sold on the basis of consignment. This season, however, encouraged by last year's sales numbers, most exporters choose fixed prices to cooperate. This is increasing the risks for those who are trading.
The quality of American oranges is better than in 2015. Last year, due to prolonged strikes at export ports in the US, a substantial part of the fruit was delayed which deteriorated the quality.
Lower prices
With large import volumes, market prices of oranges are now lower than expected. This week, the price of American oranges is around 220RMB per box for its most popular 88 size. This is already slightly higher than the price before the Chinese Spring Festival. Prices for Spanish oranges hover around 180-200 RMB and prices for Egypt oranges are around 80-90 RMB.
Strong Chinese domestic crop
“This season, Chinese domestic oranges are of particularly good quality. They are sweet, firm and have clean skins," comments a wholesaler at the Huizhan market of Shanghai. In Huizhan market, most wholesalers work with both Chinese domestic oranges as well as imported oranges at the same time.
“Although Chinese domestic orange is coming to the end of the season, compared with oranges from other countries, it still has better taste. Especially the brix levels are high this season. Most domestic oranges have 13+ brix. Import oranges from other countries are still in early season, and their brix hovers between 11 and 12.
As the import season proceeds, importers and wholesales are waiting for sweeter imported oranges and smaller volumes of Chinese oranges. “I sincerely hope there will be a price increase later,” comments another citrus importer on the market.
