'Old Huaniu' is now in its peak production phase
"After bearing fruit for the first time last year, the apple trees are having a peak production this year. Compared to the previous production season, we are producing 10% more. Even though the quality is not as good as last time because of the dry weather in the first half of 2016, the market price is stable."
Increased production volumes
"In 1953, Li county already grew this variety. After that, the market changed drastically and Old Huaniu was gradually replaced by the 'New Huaniu' apple variety, which looked better. In order to save the 'Old Huaniu' apple variety from extinction, we started with an exclusive cultivation in 2010 and successfully brought the variety back on the market. The 'Old Huaniu' apples we produce are sold to the market under the brand 'Xihan Water + Picture'. 80% of the apples are sold through traditional shops and 20% is sold online. They are sold in wholesale markets in Canton, Shenzhen, Shanghai, Beijing and Henan. 20% of the apples are exported to Malaysia, India and other South-East Asian countries. In the last few years, our apples have gained popularity among consumers, so our export volumes are constantly increasing.
Export prices are pretty stable, but the pricing within China is increasingly volatile. This is mainly due to the large-scale expansion of a few varieties and the decline of the overall market environment. In the future, we hope that we can expand in the overseas market with the support of government policies in the production industry. We want to export our apples to Europe.
"Our cooperative was founded in 2010. We own 40 hectares of cultivation ground, which is located in Li county and produces 1600 tons of apples annually. At the same time, we cooperate with the local farmers in Li county. Together we manage more than 130 hectares with a yearly production of 5000 tons to 6000 tons. In the past six years, we relied on the uniqueness of our product, and the innovative spirit of our investment group, to successfully acquire a substantial portion of the market. We also received a lot of funding and technological support from the local government. We are very positive about the future. As long as people don't blindly expand their brands, but focus on product quality, the Chinese apple market will gradually move towards stability."
