GWM China Imported Fruit Market Update Week 28 - Apple

The market in week 28 (7/5-7/11) had many influencing factors, most notably the typhoon (Chan-Hom) hitting east China affecting flights, vessels and demand. As a result prices in Shanghai were at times below the levels seen in Guangzhou. Along with the typhoon there remains the unknown impact the continued stock exchange dip will have on sentiment going forward. Fruit in short supply continued to find a good market, provided prices were in a reasonable price band. The weather in week 28 as forecast saw better conditions in south China, with only some rainfall affecting the region. This rainfall however also delayed harvest of Yunnan grapes. East China was most notably impacted by negative weather with typhoon Chan-Hom, approaching and finally landing bringing with it heavy rainfall, flooding and strong winds. Week 29’s forecast is for warm temperatures throughout China with Guangzhou seeing rainfall for most of the week.

The market for Royal Galas from Chile, New Zealand and South Africa remained stable in week 28, with the variety continuing to enter a good market as a result of both steady lower levels of supply and persistent demand on the market. Premium specification Chilean Royal Galas continued to price and move in the range ¥280-310 (count #100/113, 19kg) this as extra fancy fruit mostly priced between ¥250-270 (count #100/113, 19kg). Due to the favorable market fruit arriving with quality or condition issues that would have lower returns by a larger margin were able to still find good movement at reasonable prices. Unconventional sizes #80/90/125/138 were also supported and saw price increases as buyers bid for limited fruits available. New Zealand and South African Royal Gala was available but limited, South African produce was particularly limited with the 2015 season being the first time apples have been granted access. New Zealand Royal Gala showing high colouration priced and could move between ¥260-280 (count #90/100, 17.6kg), this as South African Royal Gala showing good visuals, crunchiness and flavor were priced at between ¥250-260 (count #100).

Late Queen from New Zealand mostly priced in the range ¥390-430 (count #70/80/90, 17.6kg) although many arrivals not showing the required colouration, coupled with marking and inconsistency continued to be discounted by a large margin on the market. As a result importers have tried to push more problematic fruit into other sales channels.

U.S.A Red Delicious saw little change in the market during week 28 with price levels remaining in a similar range, with overlaps in price remaining between premium and extra fancy specification. Most extra fancy showing good quality continued to price and move at between ¥200-220 (count #72/80, 20kg) while premium priced between ¥230-250 (count #72/80, 20kg) with only renowned brands with consistent quality able to move at better price levels.

Chilean Royal Gala exports to China and Hong Kong year to date volumes are up 14% at 640k cartons shipped. As noted departures in week 26 were up while week 27 was not fully updated. Departures in week 27 were recorded at 37k cartons which is down compared to week 26 however still up compared to previous weeks. In departure weeks 26/27 roughly 80% has been sent to south China while just under 20% was bound for Shanghai.