"In recent years, the price of China's domestic fruit has increased year on year, and the competitive advantage of fruit export in price has gradually weakened. The reason is that the domestic labor cost has increased, and the overall fruit quality has improved, thus creating a larger premium space." Mr. Kyle Zeng, the representative of Shaanxi HoVo Import & Export Co., LTD, which focuses on fruit and vegetable export trade, shared the market information on fruit export with Freshplaza.

It is understood that in recent years, domestic high-quality orchards have emerged more and more, and fruit varieties have become more diversified. In addition, companies in the industry have introduced high-end young plants from abroad for cultivation, and the planting standards and quality are gradually improving. At the same time, international sea freight rates have risen sharply since last year, coupled with increased domestic labor costs, resulting in a continued increase in the overall export price of Chinese fruits.

"It is worth noting that domestic fruit production is shrinking significantly, and it is estimated that it will shrink by 30% to 50% this year." According to Kyle, "the primary reason for the reduction in production is climatic factors. This year, China has continued to suffer from widespread drought, and many fruits are lacking water during the stage of fruit-setting stage and ripening. Another reason is the replacement of traditional varieties. Since a few years ago, some ordinary varieties have gradually been unable to meet the market demand. Many fruit farmers have been digging up old trees to plant other crops this spring. It takes at least three years for the tree to reach maturity. Fruit yields decrease during variety changing.”

Southeast Asia is the main export market for Shaanxi HoVo.  Kyle talks about how the market has changed over the past three years. "In 2020 and 2021, the Southeast Asian market has not changed much, and China's fruit exports to the region have continued to grow. But this year's market has been much weaker, and our company's exports to the region have dropped by 40% this year. The reason is that poor macroeconomic conditions and the devaluation of the local currency are the main reasons. "

Kyle continued to say that the economic situation in recent years has led to a decline in local living standards, especially in some economically underdeveloped countries, where a large number of unemployment or job instability have occurred, resulting in a serious decline in market purchasing power. On the other hand, the US dollar interest rate hike has seriously depreciated the local currencies of many Southeast Asian countries, which indirectly leads to a substantial increase in import costs and weakens buyers' demands, "Taking Bangladesh as an example, the increase in US dollar interest rates have caused the local currency to depreciate by more than 20%. In addition, the country has increased tariffs and has a shortage of foreign exchange. The local government prioritizes purchasing energy and other livelihood products with foreign exchange, and then considers consumer goods such as fruit."

Shaanxi HoVo Import and Export Co., Ltd. is mainly engaged in fruit and vegetable products. It has more than 12 years of export trade experience and has its own fruit processing factory. The company's fruit products include apples, grapes, tangerines, pears, and plums; vegetables include carrots, and garlic. The main export markets are India, Bangladesh, Sri Lanka, Malaysia, Thailand and other Southeast Asian countries, as well as Dubai, Oman and other Middle East regions.

More information: Kyle Zeng Shaanxi HoVo Import & Export Co.,LTD Tel: +86 139 9199 8431 358551851@qq.com  www.sxhovo.com 

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