SOURCE: Freshplaza
The lockdown in Shanghai is over and the sales of import pineapples have resumed, but market conditions are chaotic. The sales figures are not as good as traders anticipated. One seller of Philippine pineapples in Jiaxing Wholesale Market recently talked about current conditions in the market.
“Sales of Philippine pineapples have improved compared to a few months ago. That is first because the domestic pineapple supply season is over and so the overall supply volume is rather small. Market demand for import pineapples therefore increased. Second, the lockdown in Shanghai is over and market movement is gradually recovering. Third, the summer arrived. There is a strong demand for fruit juice in the summer, and so the demand for pineapples grows too.”
The pineapple seller also explained that the overall market conditions improved compared to a few months ago, but conditions are not yet as good as people had hoped. “Products from the Philippines generally enter China through ports on the east coast. Shanghai was in lockdown from March until May, so container traffic came to a halt. Some containers did not leave Shanghai until June or July, and movement remained slow. Traders had hoped that the price of pineapples would recover once traffic resumed, but the price remains disappointing. Conditions have improved compared to lockdown, but that is not much,” said the trader.
“The prices of imported pineapples are mixed. Companies have different expectations for the cost and retail price of import pineapples. For example, some companies expect to sell import pineapples for 80 yuan [11.85 USD] per box, while others expect to sell for 95 yuan [14.07 USD] per box. That is why no two traders can agree on reasonable market conditions.”
“China temporarily halted the import of pineapples from Taiwan in 2020. And the global shipping crisis makes pineapple import from Costa Rica difficult and expensive. Moreover, shipping delays and lengthy customs procedures affect the product quality of South American pineapples in the Chinese market, which limits their import volume. The Philippines can supply the Chinese market with pineapples all year long, so Philippine pineapples currently dominate the market.”
According to the pineapple trader in Jiaxing Wholesale Market, “The Philippines primarily grows MD2 pineapples, which can be supplied all year long and have a long shelf life. The price quality ratio of this pineapple is excellent.”
“Pineapple export from the Philippines to China was never completely cut off during the pandemic. Shipping containers are still subject to various disinfection measures and cargo space is difficult to reserve, but problems are slightly smaller than last year. The shipping cost is around 4,000 USD per container,” said the pineapple trader.
When asked about predictions for the next few weeks, the trader replied, “The price is likely to continue its slow rise in August and September, but there is not much room for the price to grow.”