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Chongqing and Chengdu Fresh Fruit Markets 2002
Chongqing, one of China's major citrus growing areas, continues
to be the main distribution point for imported fruit entering
China and reaching end-consumers located in the country's southwest
region. Imported fruit distribution in Chongqing is handled by
five different companies, an increase from two in 1999, but only
two distribute a wide variety of fruits. The distributors mainly
rely on the imported fruit wholesale markets of Guangdong province
for their fruit, except for varieties indigenous to Southeast
Asia. Those varieties often are shipped from Vietnam directly
to Chongqing. Chengdu, the capital of Sichuan province and near
Chongqing, has few imported fruit distributors located in its
main fruit wholesale markets.
The main wholesale market in Chongqing where imported fruit distributors
are located is called the Caiyuanba Wholesale Market. During Post's
November 2001 visit, imported oranges, lemons, grapefruit, Star
fruit and several varieties of apples were available to local
consumers. Imported fruit distributors at the market claimed that
they buy most of their produce from both the Lishui and Huadu
Fresh Fruit Markets in Guangdong province. To buy the fruit in
Guangdong and arrange for shipment to Chongqing, instead of constantly
traveling between the two locations, these distributors usually
have representatives at those markets. A few imported fruit Point-of-Purchase
materials are on display at the market, mainly Washington Apple
Commission and California Table Grapes Commission posters. The
market hosts seven separate cold storage rooms, mostly owned by
the five distributors of imported fruit. In addition, according
to at least one distributor, wholesale profit margins for imported
fruit distributors at this market tends to range from eight to
ten percent. On some occasions, margins can reach 15 percent.
Two of the imported fruit distributors interviewed by Post say
that the period from February to June now tends to be their best
sales period. They further noted that during that time domestic
fruit supplies often are low. One of the distributors also added
that during that time period he usually has a truck delivering
a shipment from Guangdong almost every day. During other months,
shipments come about twice a week.
According to two separate distributors, table grapes are the most
popular variety of imported fruit in the region. Both say that
Chilean table grapes sell better than Californian ones. One distributor
based his opinion on perceived product quality, while the other
claimed that timing was a greater factor. The latter said that
his best sales period for grapes is usually from February to June
when domestically produced grapes are unavailable and Chilean
grapes are more plentiful than Californian ones.
Chongqing distributors currently have only one major complaint
about imported grapes and this complaint focuses on packaging.
While Styrofoam boxes are appreciated, they do not like the placement
of the grapes in plastic bags before shipment in the boxes. At
the market, the distributors showed Post one box in which the
grapes were packaged in this manner and which also had a Western
Diamond brand of California sticker on the side. These distributors
claim that the plastic bags restrict air circulation and leads
to product damage, particular those grapes on the bottom. They
would prefer that the grapes were not packaged in such a manner
before overseas shipment. Although imported grapefruit was still
available at the market, distributors say that its popularity
has not greatly improved over the years. They cited its taste
as the main reason for low sales. This same reason for poor sales
was cited by a local distributor two years before. Other imported
citrus fruits, say the distributors, have good sales due to their
good quality and taste, despite the region's reputation as the
source of a sizable portion of China's citrus crop every year.
The imported fruit distributors at the Chongqing market feel that
future sales should improve due to China's official entry into
the World Trade Organization. In particular, they feel that lower
Chinese import tariffs will help bring overall prices down across
the supply chain. One distributor believes that entry and subsequent
tariff reductions should force his grape prices down to under
80 Yuan ($9.69) per box and lead to a huge increase in sales.
Chengdu has several sizable fruit wholesale markets, but the largest
is the Southwest Fruit Wholesale Market, formerly known as the
Simaqiu Fruit Wholesale Market. Over a hundred different distributors
operate booths in that market, but only a handful sell imported
fruit. When visited by Post last November, the only imported fruit
available was bananas from the Philippines and Ecuador. Although
most of the domestic fruit available came from western China,
some of the available domestic fruit came from as far away as
Hebei and Fujian provinces which are located on the country's
east coast.
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