Current Chinese imported fruit market
After the Spring festival, a shortage of imported cherries occurred and was evident in China's main fresh food Apps and offline stores. As indicated by the data of GAC, import volume of fruits in January and February decreased by 9.9% compared with the same period of last year.
Data Source: China GAC
Retail prices have increased accordingly. In a 7FRESH store (JD offline fresh food supermarket), a box of New Zealand kiwis (10 kiwi fruits inside) now sells at 59.9 Yuan (around 8.5 dollars) 10 yuan higher than before. These types of price increases have not impacted all imported fruits.
Concerns
Though short-term inventories have not yet been severely affected, impact on the supply chain will be the main concern in the long run. Strict lockdown policies across the globe are the first barrier. According to Chinese traders, "It’s hard to import from America, many factories and enterprises have shut down; as most airlines are closed, air transportation is more expensive." Labor shortages are also disrupting the supply chain.
No substantive impact on the Chinese market
According to GAC data of 2018, Vietnam is the biggest fruit exporter to China, with a gross volume of 1,340,000 tons, followed by the Philippines and Thailand. Southeast Asia has performed well in minimizing the disruption caused by COVID-19, and thus China’s market is not expected to be badly hit. Consumers of imported fruits in China consist mainly of high-income groups. These consumers are more tolerant of price fluctuations. China GAC has also implemented measures to expedite the clearance of imported fruit in an effort to offset the negative economic impact of COVID-19[1].
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