Chinese Spring Festival turns around apple market
The apple market in China looked somewhat gloomy, prices gained strength, but apples lacked a market…The apple market in China looked somewhat gloomy, prices gained strength, but apples lacked a market. Quite a few traders limited their supply volume and did not expect the market to turn around during Chinese Spring Festival [February 5th, 2019]. Now traders all over China report that their apple stock is sold out, which is a nice surprise for traders in this winter's fruit market.
Retail conditions in the apple market during Spring Festival exceeded expectations. The trade volume in the market was relatively low before the festival, because the price was too high and demand therefore limited. This situation began to change when Spring Festival concluded, and this surprising new development still continues. Sales even exceed recent years, in particular when it comes to apples in gift boxes. Consumers appreciate the gift boxes during this festive period. The price of apples is unlikely to drop.
The apple market has been in in "restock" mode since sales conditions improved. Traders were too cautious and are ill-prepared to deal with this unexpected turnaround. Furthermore, labor is in short supply in the period around Spring Festival. The apple market will likely remain under pressure for some time. Nearly every apple market in China deals with temporary supply shortages, except for a few areas such as Wuxi in Zhejiang.
Brands are gaining importance in the Chinese apple market, which is a powerful new development in this industry.