Coronavirus in China: ASOEX estimates that fruit export revenues would decrease by about USD $ 100 million

After participating in the second meeting of the public-private table, headed by the Minister (s) of Foreign Affairs, Rodrigo Yañez, and where the situation of Chilean exports against the Coronavirus in China was analyzed, the President of the Exporters Association de Frutas de Chile AG (ASOEX), Ronald Bown Fernández, specified that the fruit export industry could see a decrease in export earnings of close to USD $ 100 million. 

“After the end of the Chinese New Year celebrations, there were expectations regarding the commercial revival, however, the Monday 10 February only 68 containers of cherries were sold. While in total, during the first 48 hours of operations in the wholesale markets of Shanghai, Guangzhou, Beijing and others, only 249 containers of the chain's existing fruit stock, which is estimated at 1.500 containers, of cherries have been sold ”, Specified the President of ASOEX.

He added: “In the first sales, prices have been lower than expected, and also in relation to the values ​​reached before the Chinese New Year. We believe that if the current trend continues, lower revenues could be projected for the cherry export sector between USD 70 and 80 million. Now, if we add other fruit species to this, we could reach losses of close to USD $ 100 million. However, this could vary depending on the evolution of the situation, therefore, we are constantly evaluating the market and in conversation with our representatives in China ”, 

Likewise, the leader of the fruit exporters indicated that “there is also concern about the fruit in transit to China, which we estimate in 1.600 containers, whose arrival dates will occur between the current week and that of the Winners will be announced in March. We are talking about 59 containers of blueberries, 173 of cherries, 872 of plums, 387 of nectarines, 30 of avocados and 134 of table grapes ”.

Given the above, he pointed out that ASOEX is working with the corresponding phytosanitary authorities, in the diversion of fruit in transit to other markets in Asia, or even within China. “The SAG has quickly issued the changes of documents requested by the exporting companies both for changes of destination of containers in transit (20 to 30 units), as well as change in the ports of entry of the cargo for its arrival in China.

Due to the high congestion in some ports in China, collaboration from our Embassy is required so that the usual hospitalization periods, from two to three days, can be shortened to less than 24 hours after the cargo arrives, together with allowing the entry of the containers with a copy of the phytosanitary certificate, without waiting for the arrival of the originals, ”said Bown.

Promotions and donations 

Ronald Brown pointed out that the fruit export industry has initiated an adaptation of the export promotion strategy in China, which includes facilitating the consumption of the fruit basket exported by Chile, including cherries, blueberries, stone fruits and table grapes. highlighting its nutritional benefits, as well as being a natural source of vitamins.

He explained that mainly the consumption of fruits will be publicized via online media, although some actions will also be carried out in retail chains using promotional materials. “Likewise, the sector will also continue with donations of fresh fruit to clinics and health centers. The first delivery will be made during this week and will consist of 1.000 boxes of 1,5 kilos of blueberries, which will be donated to the hospital of the lung of Shanghai ”.

Market Situation and main challenges 

The leader pointed out that in recent days retail sales have improved in China, due to the restriction imposed by the authorities on visits to traditional markets and free fairs, visualizing a consumer preference for local fruits such as apples, pears and citrus fruits because they are considered sources of vitamins. "The main challenge that retail chains face is the low number of employees who go to work, due to the restrictions imposed by the Government on the population, to move from their home to the workplace."

However, regarding sales in e-commerce, he pointed out that these have been slow, due to the restrictions to transit of workers and delivery people, in addition to the lack of product.

Congestion in ports and detours 

Regarding the situation of the ports, such as Shanghai and Tianjin, Ronald Bown specified that they are still congested, but the problem is not being caused by Customs or the Port, but by the large number of containers of frozen meat that have accumulated over the last 3 to 4 months, and that they have monopolized the plugs available to connect the fruit containers and thus maintain their cold conditions.

Given this scenario, he highlighted that some shipping companies have had to leave refrigerated fruit containers in other ports, such as Hong Kong and Busan, waiting to be transferred later to the port of Shanghai. All this could have an impact on the condition of the fruit, as is the case with cherry varieties such as Regina, which have a shorter postharvest time. 

* Official information prepared by ASOEX based on the sale of the wholesale markets of Guangzhou and Shanghai of China.

** Average price calculated based on the available standardized information for each fruit: 5kg cherries, 8,2kg table grapes, 9kg nectarines, 9kg plums, 1,5kg blueberries and 4kg avocados.

1 Fruit stock in China available for sale, includes prior arrival and new arrivals after the Chinese New Year.

2 Percentage variation of container sales from February 10 compared to the average daily sale after the Chinese New Year (February 1 to 9, 2020)

3 percentage variation of the average price traded in standard format for each fruit from February 10 compared to the weighted average price after the Chinese New Year (February 1 to 9, 2020)

4 Percentage variation of the average price traded in standard format for each fruit from February 10 compared to the average price traded last season after the Chinese New Year (February 12-22, 2019)

5 percentage variation of the average price traded in standard format for each fruit of February 10 compared to the average price traded before the Chinese New Year 2020 (January 18 and 19, 2020)

Source
SimFRUIT

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