APPLE MARKETS

Nelson Evening Mail, Volume LXIV, 4 February 1930, Page 6

APPLE MARKETS

PROSPECTS IN CHINA

SOME INTERESTING INFORMATION

In tho current "News Bulletin" prepared by the New Zealand Department of Industries and Commerce appears an article on the market fur fresh apples in Hongkong and South China. The information given should prove of particular interest to Nelson. The article states:—

In view of the interest taken in the extension o* -New Zealand's trade in overseas markets and particularly in catering for trade with the Eastj the following report upon the market for fresh apples in Hongkong and South China, reprinted from the "Commercial Intelligence Journal," dated 19th October, 1929, may be of interest and value:—

There being no actual statistics published in Hongkong covering imports of fresh apples, the only available figures are those based on information obtained through investigations 'among the leading importers of this commodity. Estimates place the yearly trade in imported apples into " Hongkong at from 40,000 to 50,000 cases valued at from GHO,OOO dollars to G 125,000 dollars.

SOURCES OF SUPPLY

This trade, to the extent of 95 per cent, is controlled by United States exporters Who ship regularly during nine months out of twelve, beginning about the middle of August and continuing until the end of April. Early shipments emanate from California and in later, months from Washington and Oregon. Australian growers also ship to the Hongkong market, .but in only limited quantities, their .shipments arriving here during the earlier months of the year. Owing to high freights and infrequency of steamer service no serious competition is met from this source. Supplies also arrive from Chefoo in North China, from June to August of each year. Inquiries made among importers and dealers show that supplies from this source are of an uncertain quantity; no shipments of any size have been received from this port during the present year.

IMPORTS FROM CANADA

Canadian growers have up to the present time taken no active part in the export trade of fresh apples to Hongkong. Dealers report that there have been very few, if any, direct shipments of the commodity from Canada to Hongkong in the past, and that Canadian apples are almost in this territory. It is believed that this statement is correct, and that a few cases brought into Hongkong from time to time by Chinese members of crews of steamers operating directly between Vancouver and Hongkong have constituted the whole of the trade. For the greater part these apples have been distributed amongst various smaller dealers for sale on a commission basis. It will readily be seen that, owing to the cases being carried in the crew's quarters instead of in proper refrigerated space, the apples must have arrived in a more or less deteriorated condition and have naturally been far from representative of the Canadian product. These occasional shipments brought out by individuals who are in no way interested in the possibilities of creating a regular market have tended to give both the wholesale purchaser and the average buyer an erroneous impression regarding the standard quality of Canadian apples.

MARKET CHARACTERISTICS

The local apple trade is .carried on both with Europeans, of whom there are approximately 14,000 in Hongkong, and the wealthier and middle-class Chinese, who are regular purchasers of this commodity. Based upon a consuming population of 75,000, and having regard to the fact that the supply of fresh fruits in Hongkong is strictly limited by the lack of cheap storage as well as by numerous deficiencies in both quantity and quality of local supplies, and that the Chinese population is every year consuming more imported apples, there would appear to be every possibility that the market may show considerable development. In inaugurating a market for goods such as these, which have previously been nnknown in Hongkong, the requirements of importers must be carefully studied and every inducement in the way of term's offered, even to the extent where business may be done at little or no profit for a short period. Importers and dealers are reluctant to place orders for a product that they have not hitherto handled. For this reason exporters should be prepared to ship small trial orders on consignment to importers who are interested in doing business in this commodity and through whom good results could reasonably he expected. Once the product has become fairly well known, it should no longer be necessary to forward on consignment nor would this be asked by local importers. One of the essential factors in establishing various grades, and varieties of any fruit in this market is the adoption of a distinctive trade mark. This should be of a type that will appeal and would be easily recognised and remembered by the less intelligent fruit dealers. When first put on the market this trade mark will naturally be strange to these retailers who would have to be persuaded by the importer or his broker to give them a trial order. If the apples are found to be satisfactory in quality, regular orders could be counted on from such sources.

Approximately 60 per cent, of the apples imported into Hongkong are consumed locally, the remainder being transhipped to Singapore, to Bangkok, and to various South China ports. The market in Canton is comparatively small, hut may be expected to show a steady increase.

■METHODS OF SALE

There are in Hongkong a few foreign and Chinese importers and dealers who purchase supplies direct from exporters and sell to the retail fruit stalls, of which there are some three or four hundred. Importers receive regular price quotations either by letter or cable from overseas exporters. These are broadcast by brokers in their employ, who canvass the retailers and book advance orders at prevailing rates. In this way the importer is able to regulate his supplies to the requirements of the market.

There appears to be no particular preference for any one variety of apple in this market, provided that the flavour and colour are fair and the fruit will retain its firmness under indifferent storage conditions. The quality must compare favourably with that of the United States product to which the market is accustomed

The average price of United States apples at present being imported into Hongkong is from G 2.25 dollars to C 3.25 dollars per case. The number of apples per case as

preferred by the Chinese, dealers is from 160 to 180,' although occasionally there is a decided preference for 200 to 225. These are packed in standard size boxes of a net weight of 'lO pounds.

EXPORTS FROM NEW ZEALAND

Now Zealand's principal market for fresh apples is the United Kingdom, , ; but other markets are now being rapidly 'developed in Canada,'Argentina, Brazil and Uruguay. Growers in New Zealand have, up to the present, taken no part in the export trade of apples to the East, principally owing to the absence of proper refrigerated space. The Department dealt in a recent bulletin with tho disabilities under which the Dominion suffers through the lack of adequate shipping facilities, but with the establishment of a regular direct shipping service there would appear to be no serious bar to the entry of New Zealand into the export trade in fresh apples to the East.