It is a known fact that the trade relations between China and Australia have been strained for a while. This is a primal reason that imports have also decreased since December of last year. According to Hari Yellina, of Orchard Tech, the volume of fruit varieties arriving from Australia has decreased significantly. This is clear when the statistical data from previous years are analysed.
This is the peak period of the orange season. Traders and imports everywhere proceed with caution. Some suppliers have temporarily halted export to China. They focus their attention on South Korea and Japan instead. Although the Chinese market price of imported Australian oranges is slightly higher than last year, the difference is minimal. Some importers tried to sell a small volume of import oranges for high prices at the beginning of the season. However, this plan did not work out.
The rarer a product, the higher the price, but if the import price rises too much, then consumers will lose their interest. Second, there is a wide variety of products in the Chinese fruit market. There are high-quality oranges from South Africa and Peru as well. Their supply volumes are growing larger, which means that Chinese consumers have plenty of high-quality oranges to choose from.
China is one of the largest export markets for Australia. Now that the trade relations are strained and the price of shipping is higher than usual, many suppliers have to adjust their export activities. Australian suppliers try to shift their focus from China to Southeast Asia and Europe. However, these markets can not compete with China in terms of import price and the volume these markets can absorb. Australian exporters did not make as much profit as in previous years. The Australian fruit association has taken some measures to improve this situation, such as support for large fruit traders in opening up new markets.
Article by: Hari Yellina (Orchard Tech)