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Demand for Chinese citrus continues to grow

foodmate 2017-03-02
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Tag: citrus China

Market transactions in citrus are lively and the prices have generally increased. On February 27th the average price in all citrus production areas nationwide was 0.76 EUR per kilogram (4.36 RMB). In comparison to the 0.30 EUR (2.18 RMB) one month ago, the price has gone up by 26%. The disequilibrium between supply and demand is the main reason for the recent high prices of citrus fruits.

If we take the ponkan mandarin as an example, from January 27th to February 26th in 2017, the ponkan has already ended its final period in the market. Its price and supply have demonstrated a completely opposite trend, namely that the supply was dropping continuously while the price was incessantly going up until the 26th of February. On that day the price was 0.36 EUR for a kilogram (2.60 RMB). Within one month the price had grown five times, but the supply had dropped nearly sevenfold.

While for ponkans, the reason for the price increase was a simple issue of supply not meeting demand, the high prices of other citrus fruits is due to the relatively small area in pruduction which is not up to satisfying the growing market for fresh fruits. This is driving up the overall price for citrus in China.

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