Recently, the news of “Cherry Market Collapse” and “Feed them to the pigs” has been circulating on the internet in mainland China, attracting attention. Some distributors have indicated that not all the information circulating online about the cherry market should be fully trusted, as there are individuals intentionally creating panic for their own benefit. Several cherry sellers have advised newcomers in the industry to steer clear of dealing with cherries due to the complexity of the market.
In the past few years, cherry prices have soared to hundreds or even thousands of yuan per kilogram, making it unaffordable for many. However, with a sharp increase in imports, the prices of Chilean cherries have started to decline. On short video platforms, many merchants are promoting cherry sales with slogans like “cherry market collapse” and “big price drop”.
According to Red Star News on February 3, they consulted several first-tier cherry distributors in cities such as Guangzhou, Xi’an, and Jiaxing recently. Many owners mentioned that due to a dramatic increase in cherry supply this year, prices are at their lowest in recent years. One owner said, “Previously, even 2J-grade cherries could easily sell for three to four hundred yuan, but this year prices have dropped significantly.”
However, many owners also emphasized that good quality cherries are still selling well, and many alarming reports circulating online are intentionally exaggerated.
On January 26, a media outlet in Zhejiang released a short video news claiming “Cherry Market Oversupply, Feed them to the pigs,” and “Fruit distributors incur losses of over a million yuan”… the authenticity of which remains questionable.
The report indicated that the news was a compilation from accounts such as “Sweet Fruit Season Fresh Fruit,” “Fengyunyouyuoguo Fresh,” and “Durian King Hu Zong.”
Upon searching these accounts, Red Star News reporters discovered that the primary content posted was related to the price drop of cherries. The posts were made around last November when foreign cherries were being airlifted into China and this January when Chilean cherries were being shipped into the country.
The online platform information revealed that both accounts were store accounts and had set up storefronts to sell cherries. Starting from January 9, these accounts began live streaming to sell cherries. Despite sending interview requests to these accounts through private messages on January 26, there was no response by the time of publication.
Another blogger, “Durian King Hu Zong,” is an individual fruit vendor at the Guangzhou Jiangnan Fruit Market, mainly dealing in durians, cherries, mangosteens, and catering primarily to second-level wholesale distributors. In his latest video released on February 1, a box of 10 kilograms of cherries model JD was priced at 39.9 yuan, with the stock arriving on December 27 last year, referred to within the fruit industry as “old stock”.
On January 26, “Durian King Hu Zong” stated, “Cherry sales are still going decently, it mainly depends on the quality of the stock. Good quality cherries sell well, while inferior ones don’t.”
He mentioned that the overall cherry market situation this year isn’t very favorable. In previous years, due to lower production, cherry prices were good, but this year, with a surge in production, profits are substantially reduced.
Calling several shop owners in the Guangzhou Jiangnan Fruit Market, all of them agreed that this year’s cherry market isn’t as favorable as previous years, with prices dropping noticeably. However, they clarified that they are not selling products at a loss, just earning comparatively lesser.
Mr. Wang, the owner at the Jiangnan Fruit Market in Guangzhou, mentioned that before and during the Chinese New Year, there is usually a peak demand for cherries. As people return home for the holiday, sales see a rise, and those with good stock can make profits. Post the New Year, cherry prices are expected to decrease.
Another fruit shop owner, Mr. Tan, mentioned that customers who obtained stock at reasonable prices are making profits with very few incurring losses. With well-priced and good quality products, selling isn’t a problem. At his stall, he sells an average of 8 to 10 boxes of cherries daily, with 2J cherries – five kilograms or ten kilograms combined – priced around 230 yuan per box before the Lunar New Year.
In the cherry grading system, especially for cherries from the southern hemisphere like Chile, “J” is commonly used to denote the diameter of the cherries. The more “J”s, the larger the size. For instance, 1J denotes cherries with diameters between 26 to 28 millimeters. 2J indicates diameters ranging from 28 to 30 millimeters, 3J for 30 to 32 millimeters, and 4J for over 32 millimeters.
Regarding the online claims of cherry market collapse, Mr. Tan mentioned that it’s essential to know the quality of cherries being affected. Lower prices are primarily for mid to lower-tier products whose arrival in the market dates back over a month. Hence, the credibility of online statements is only partial.
“Cherries are a business where some profit while others lose, it depends on your approach. This year has seen the highest amount of imported cherries, resulting in the lowest prices. Based on the past sales trends, how could 2J cherries sell for just a few hundred yuan per box?” Mr. Tan reflected. Last year despite poor stock, sales were good, but this year, the increased imports of mid to lower-grade stocks have significantly impacted prices.
A longstanding fruit market vendor in Zhejiang’s Jiaxing Market, Mr. Hou, with seven to eight years of cherry sales experience, highlighted that the current market situation is a result of the increased import volumes. As a first-tier seller, he isn’t experiencing losses as the products primarily sourced from Shanghai for his stall also involve a 4% consignment fee.
Mr. Hou suggested that unless fruit vendors have established sales channels, they should refrain from stocking up on cherries. Post Chinese New year, prices are expected to drop further, especially recommending newcomers in the business to avoid dealing with cherries.
Another purchaser at the Jiaxing Fruit Market, Mrs. Zhu, advised newcomers to steer clear of cherries, while reflecting on the significant market changes this year that have caused considerable stress even for seasoned individuals like herself.
Mr. Ning, a food supply chain enterprise head in Xi’an, emphasized the unpredictable prices and quality of cherries over the years, with extensive dumping of stock by suppliers. He mentioned avoiding solely focusing on cherries due to the complexities of the business and only procuring stock based on customer orders.