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Chinese fruit prices drop with rising output and imports

Chinese consumers are observing a decline in prices of fruits once considered premium, such as blueberries and Shine Muscat grapes. The change is linked to increased production capacity and shifting market dynamics.

"Price fluctuations reflect fundamental supply-demand dynamics. Increased availability naturally leads to price adjustments," said Wang Wenhui, director of the fruit storage and processing research center at the Research Institute of Pomology, Chinese Academy of Agricultural Sciences.

Imports of cherries and blueberries have grown substantially, creating pricing pressure, while domestic production of blueberries and Shine Muscat grapes has also expanded quickly. This has pushed their prices downwards.

China's fruit planting area and output have continued to increase over the past decade. By 2023, output reached 327 million tons, with per capita availability exceeding 232 kilograms, above the global average. Supply is supported by seasonal fruits as well as off-season production cultivated in controlled environments.

The Shine Muscat grape illustrates this trend. Introduced in China in 2011 as a premium variety, it now covers nearly 2 million mu (133,000 hectares), with production exceeding 3 million tons. Prices have dropped from an initial farm-gate price of US$21.08 per kilogram and retail price of US$42.16 per kilogram, to around US$1.41 today. Wang explained that rapid planting expansion, higher yields, and industrial standardization have transformed Shine Muscat from a luxury product into a mainstream fruit.

Fruit imports have also increased. By 2024, China's total fruit imports were up 77.1 per cent compared with 2015. Imports have diversified in both sources and varieties, with cherries and blueberries showing rapid growth. New varieties are gaining access to the market, while supportive policies such as lower tariffs and faster customs clearance are being applied. Trade fairs such as the Canton Fair, the China International Import Expo, and the China International Consumer Products Expo are expanding channels for suppliers. Infrastructure projects, including the China-Laos Railway, the New International Land-Sea Trade Corridor, cold-chain logistics, storage facilities, and shipping routes, are further supporting trade efficiency.

On the demand side, segmentation of the imported fruit market is increasing. Different product grades are offered to meet different consumer groups. Wang noted that this provides "more diverse options and better value for money."

China's geographic diversity allows regions to produce distinct fruits at competitive prices, while e-commerce and new retail formats broaden consumer access. Looking ahead, as global fruit production grows, international trade expands, and domestic production continues to evolve, Chinese consumers are expected to access a wider variety of fruits at more stable prices.

"With abundant supply in the Chinese market and increasingly smooth distribution channels, fruit prices are expected to remain stable. The 'fruit basket' will keep expanding, giving consumers more variety and making fresh fruits increasingly accessible," Wang said.

Source: Al Wihda