Importing Premium Mandarins from Australia to China

Although China is a major producer of mandarins, Chinese consumers demand premium mandarins from other origins as well. In 2017, China produced 52% of the world’s mandarins, equalling 17.2 million tons. A large portion is exported, as China is also the second-largest mandarin exporter in the world. In 2018, 647.3K tons were exported and the rest of the mandarins were destined for the domestic market.

Despite this huge production volume, China still imports mandarins during its off-seasons. In 2018, around 52.6 tons were imported, mostly from Australia. 18.2 tons, valued at 41.5 million USD, of Australian mandarins were imported into China. According to Shouyang Fruit, a premium fruit importer located in China, the main reason for the import of Australian mandarins is the premium quality.

Australian Mandarin Varieties in the Chinese Market

Shouyang Fruit imports two main varieties into the Chinese market: Honey Murcott and Phoenix. The Phoenix is a seedless variety of the Honey Murcott. The two varieties are very similar in look, but many people prefer the Honey Murcott over the Phoenix due to its superior taste.

The two varieties are imported into China using basic packaging only: in 18kg cartons. Jack Song from Shouyang Fruit mentions that there is currently a labor shortage in Australia, making the packaging of mandarins very expensive. The fruits are thus repackaged in China by the company, into smaller quantities and premium packaging.

Demand for Imported Mandarins

There are two main factors that drive the demand for imported mandarins. Firstly, the seasons for Chinese mandarins and Australian mandarins differ. China also produces Honey Murcott mandarins, but the Chinese season is complementary to the Australian season. When the Australian mandarins enter the Chinese market, there is a low domestic supply of mandarins, making the Australian products very popular.

Secondly, many Chinese customers have strong preferences for high quality, premium fruits. As such, the high-quality Australian Honey Murcotts and Phoenix have been doing very well in the Chinese market. The Australian mandarins have been imported into China for over a decade, so there is a strong consumer preference for these imported mandarins. Most of the Australian mandarins exported to China are of the highest quality grade: Class 1.

Market Prospects for Imported Mandarins

Australian mandarins do not face a lot of foreign competition in the Chinese market. Peru and South Africa also export their mandarins to China, but the Australian mandarins are preferred due to their taste.

However, Shouyang Fruit does expect the demand for Australian mandarins to decrease slightly. “As China’s economic performance has declined slightly, the demand for expensive fruits has decreased.” Imported mandarins are often marketed as expensive, premium fruits and sold by the company to retailers, wholesalers, and hypermarkets. Song mentions that the retailers are a difficult market for the fruit right now, but there is still a strong demand coming from the wholesalers. He expects that the volume sold will be stable, as long as the price is not too high.

The production volume in 2019 in Australia has been very stable compared to last year. The price is therefore mainly dependent on the quality, which was decent this year. Currently, the CNF price for one carton of mandarins (18kg) ranges between 60 and 70 AUD depending on the quality.