China, a globalized market for fruits
(Xinhua)
Updated: 2006-01-24 13:52

"Where do they come from? They come from so many places,"said Hao Shenghu, a fruit wholesaler in Xin Fa Di Market in southern Beijing, busy counting receipts.

"Apples from America, cherries from Chile, avocado from Vietnam, kiwi fruit from New Zealand, oranges from Australia, bananas from the Philippines, and wax apples from Taiwan Province,...Well, from about 20 countries and regions,"Hao said.

But for the piles of containers of fruits, the market, the biggest fruit distributing center in China, would look like a military installation -- cold stores resemble barracks, and most of the dealers dress in an old-style cotton-padded overcoat, which used to be winter uniform for Chinese soldiers. The green-color garment was very popular in China during the 1970s and 80s.

The market usually sells between one million and two million kilograms of fruit a day, said Zhao Yiqun, manager of the market's fruit section. The figure can reach as high as three million kilograms a day during holidays, and 70 to 80 percent is imported fruit.

Despite skyrocketing prices, sales of foreign fruit are especially brisk before the upcoming Lunar New Year, the most important holiday for Chinese, which falls on Jan. 29 this year.

"Ninety-eight percent of imported fruit wholesalers in Beijing do business in Beijing,"said Zhao. "Dealers from Hebei, Shanxi, Inner Mongolia all come here to buy in big quantities and then resell the fruit to North China markets.

"The dealers are not busy now in the morning," Zhao said. "To guarantee freshness, business usually starts at 1:00 a.m. and ends at 7 a.m., and the rush hour is around 3:00 a.m."

Imported fruit used to cost about twice as much as domestic fruit in the 1990s. In June 1996, Washington Red Delicious apples averaged 1.44-US$3.2 per kilogram, while best-grade domestically-grown Fuji apples were priced at only 1.2-US$2.4 per kilogram.

But prices for foreign fruit plunged after China reduced tariffs in line with its commitments made on joining the World Trade Organization in 2001

China's recent "zero tariffs" policy applied to fruit imported from neighboring countries and regions had made it possible for overseas fruits to get on tables of ordinary families in the country.

Longan from Thailand used to cost 15 yuan per kilogram, and now averages 6 yuan; wax apples from Taiwan once topped 120 yuan per kilogram, now the price is about 20 yuan, Zhao said.

"Imported fruit sells better this year than last year," Wang Bing, another wholesaler, said with a smile. "I dealt in domestic fruit. Now I am selling imported fruits because they are more profitable."

China imported over one million tons of fruit valued at US$590 million in the first 11 months of 2005, up 2.7 percent and 8.9 percent year on year, respectively, statistics showed.

"Imported fruits taste better and are sold when domestic ones have not come on the market," an insider said, declining to give his name. "And higher prices make them a good choice as gifts during holidays."

"I sell 6,000-7,000 boxes of imported fruit a day this month," Duan Weidong, a wholesaler, said, "I used to send them to fancy restaurants and five-star hotels, but now to supermarkets and street markets as well. "

The Chinese consume on average 45.6 kilograms of fruit a year, compared with the per capita consumption of 83.3 kilograms in developed countries and 55.4 kilograms in other developing countries.

Based on its population of over 1.3 billion, China needs 20 million tons more a year to reach the world average fruit consumption of 61.4 kilograms per capita, analysts said.

China is considered a huge potential market for overseas fruit planters as its per capita consumption of imported fruit stood at only 0.8 kilograms in 2005.

"It is said the tariffs on fruit imports will be cut further this year. The business will definitely get better!" Zhao said.