China's domestic citrus production is on an upward trajectory, fueled by favorable weather conditions and successful replanting efforts that have addressed previous challenges such as citrus greening disease. According to a recent USDA report, the country's citrus sector is poised for continued growth in the 2023/24 period (12 months to October 31, 2024).
The report highlights the resilience of domestic citrus supply, indicating a potential shift in the market dynamics that could impact premium imported fruit volumes. The increasingly cost-conscious consumer market in China, coupled with a strong local citrus production, may lead to a slight dip in orange imports, projected to reach 210,000 tonnes, a decrease of 4.6% from the previous year.
While pomelo and grapefruit imports are expected to remain steady at 75,000 tonnes, and mandarins and tangerines are anticipated to rise to 70,000 tonnes, marking a 4% increase from the revised 2022/23 figures.
Despite these adjustments, the report underscores China's sustained demand for citrus products, fueled by factors such as freshness, taste, appearance, and consumer confidence in quality. The growing middle class, in particular, contributes to this demand, showcasing a preference for well-branded citrus products. Notably, domestic citrus suppliers are responding to this trend by establishing their own brands, and private label products are gaining popularity.
The USDA report indicates that major supermarket chains in China are expressing interest in well-branded fruit, entering service contracts with key imported fruit suppliers to ensure quality and superior service. The report also points to the optimism surrounding the growth of e-commerce in the citrus sector, with online marketing channels providing convenience and accessibility.
These positive projections align with the easing of Covid-19 restrictions in early 2023, including testing and disinfection measures imposed on imported fruit. As China's citrus industry continues to thrive, navigating global competition with a robust domestic supply, the International Trade Council monitors these developments in the ever-evolving landscape of international trade.
