GWM China Fruit Import Update: Grapes, Week 7/2016

During the build-up of Chinese New Year fruit sales as expected improved supporting a broad range of fruits. Although the celebrations did not necessarily improve price it did sustain movement so that stocks were not as abundant at the beginning of the CNY. Stocks of various products were carried forward into the post-CNY market however shipping as well as sales were more correctly inline to the market’s demand. As a result we have not seen dramatic price declines as has happened in previous seasons.

Peruvian Red Globe remained the most dominant grape variety on the market with arrivals in week 7 manageable with movement showing a positive trend. Both Guangzhou and Shanghai market have showed stronger pricing however this has mainly benefitted fruit arrivals from Ica which have showed a generally lighter colouration. Seedless varieties on offer have continued to arrival from primarily South Africa, Australia and Chile, with limited fruit from India and Peru visible.

Larger sized Peruvian Red Globe has started to be more available as the Ica production area begins to arrive in more substantial volumes, good quality well branded fruit showing enormous sizing could be found priced at and finding sales in the price range ¥200-220 (J/JJ/JJJ, 8.2kg). Not all of the largely sized grapes could find sales however with some importers reducing price in order to get movement started. Most of the Ica Red Globe available during week 7 priced in the range ¥150-170 (XL, 8.2kg) with lighter coloured fruit coupled with green stems and firm berries continuing to be the market ideal versus the darker berries. Jumbo sized fruit continued to price at a premium of roughly ¥10-15, while wooden packaging saw a similar premium. Although pricing for Red Globe appears to be improving it is important to note that fruit showing more average visuals coupled with darker colouration could easily be purchased at between ¥115-130 (XL, 8.2kg).

Till week 5 Peruvian departures stand at 5.9 million cartons which represents a decrease of 22% compared to the previous season. Departures were visibly planned to skip the arrival week directly after the Chinese New Year which has definitely been welcomed by the market. Departures from both Peru as well as South Africa show the focus on Chinese New Year demand, with decreased departures set to arrive in the immediate post-CNY market. South African and Australian Crimson were widely visible in the market with price not adjusting much compared to the sales period one to two weeks before Chinese New Year. South African Crimson showing a dark colouration but green stems asked at between ¥120-130 (XL, 4.5kg) while limited fresh arrivals were able to price at above the ¥135 (XL, 4.5kg) level. Australian Crimson mostly showed dark visuals with most fruit asking between ¥360-380 (9kg). Red Seedless remains dramatically up compared to the 2013-2014 season (up 167%) however quite similar to the previous season (down 5%).

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