Frozen Vegetable Price in China Stands at $1,331 per Ton

China Frozen Vegetable Export Price in September 2022

In September 2022, the frozen vegetable price amounted to $1,331 per ton (FOB, China), remaining relatively unchanged against the previous month. In general, the export price, however, showed a relatively flat trend pattern. The most prominent rate of growth was recorded in March 2022 an increase of 3.2% month-to-month. The export price peaked at $1,355 per ton in January 2022; however, from February 2022 to September 2022, the export prices stood at a somewhat lower figure.

There were significant differences in the average prices for the major foreign markets. In September 2022, the country with the highest price was Japan ($1,777 per ton), while the average price for exports to South Korea ($810 per ton) was amongst the lowest.

From January 2022 to September 2022, the most notable rate of growth in terms of prices was recorded for supplies to the Philippines (+3.0%), while the prices for the other major destinations experienced more modest paces of growth.

China Frozen Vegetable Export Prices by Type

There were significant differences in the average prices for the major types of exported product. In September 2022, the product with the highest price was frozen vegetables other than potato and corn ($1,379 per ton), while the average price for exports of frozen sweet corn ($864 per ton) was amongst the lowest.

From January 2022 to September 2022, the most notable rate of growth in terms of prices was recorded for the following types: frozen potato (+0.5%), while the prices for the other products experienced a decline.

China Frozen Vegetable Exports

In September 2022, the amount of frozen vegetables exported from China contracted to 111K tons, with a decrease of -2.7% on August 2022 figures. Over the period under review, exports continue to indicate a pronounced reduction. The most prominent rate of growth was recorded in March 2022 with an increase of 54% m-o-m. Over the period under review, the exports hit record highs at 143K tons in January 2022; however, from February 2022 to September 2022, the exports remained at a lower figure.

In value terms, frozen vegetable exports fell modestly to $148M (IndexBox estimates) in September 2022. In general, exports recorded a noticeable contraction. The pace of growth was the most pronounced in March 2022 with an increase of 59% m-o-m. Over the period under review, the exports hit record highs at 194K tons in January 2022; however, from February 2022 to September 2022, the exports stood at a somewhat lower figure.

China Frozen Vegetable Exports by Type

Frozen vegetables other than potato and corn (93K tons) was the largest type of frozen vegetable exported from China, with a 84% share of total exports. Moreover, frozen vegetables other than potato and corn exceeded the volume of the second product type, frozen potatoes (11K tons), eightfold.

From January 2022 to September 2022, the average monthly rate of growth in terms of the volume of export of frozen vegetables other than potato and corn totaled -4.1%. With regard to the other exported products, the following average monthly rates of growth were recorded: frozen potatoes (+2.6% per month) and frozen sweet corn (+7.5% per month).

In value terms, frozen vegetables other than potato and corn ($129M) remains the largest type of frozen vegetable exported from China, comprising 87% of total exports. The second position in the ranking was taken by frozen potatoes ($13M), with a 9.1% share of total exports.

From January 2022 to September 2022, the average monthly rate of growth in terms of the export volume of frozen vegetables other than potato and corn totaled -4.1%. With regard to the other exported products, the following average monthly rates of growth were recorded: frozen potatoes (+3.2% per month) and frozen sweet corn (+6.9% per month).

China Frozen Vegetable Exports by Country

Japan (38K tons), South Korea (29K tons) and the United States (9K tons) were the main destinations of frozen vegetable exports from China, together comprising 69% of total exports. These countries were followed by the Philippines, the UK, Thailand, Australia, Chile, Canada, Germany and Taiwan (Chinese), which together accounted for a further 18%.

From January 2022 to September 2022, the most notable rate of growth in terms of shipments, amongst the main countries of destination, was attained by Chile (with a CAGR of +16.6%), while the other leaders experienced more modest paces of growth.

In value terms, Japan ($67M) remains the key foreign market for frozen vegetable exports from China, comprising 46% of total exports. The second position in the ranking was held by South Korea ($24M), with a 16% share of total exports. It was followed by the United States, with a 7.4% share.

From January 2022 to September 2022, the average monthly rate of growth in terms of value to Japan stood at -4.4%. Exports to the other major destinations recorded the following average monthly rates of exports growth: South Korea (-3.6% per month) and the United States (-5.4% per month).

Factors Affecting Frozen Vegetable Prices

Frozen vegetable prices in China have been on the rise in recent years, due to a number of factors. One major factor is the increasing cost of raw materials. The price of fresh vegetables has increased by 30-40% in the last few years, due to rising labor costs and other production expenses. This has led to an increase in the price of frozen vegetables as well, since most manufacturers use fresh produce as their raw material.

The cost of raw materials has increased, as farmers have had to deal with rising input costs. This has been compounded by weather conditions, which have been unfavorable for crops in many parts of the country. Also, labor costs have also risen sharply in China, as workers have demanded higher wages in order to keep up with the cost of living. These factors has led to higher production costs for frozen vegetable manufacturers, which have then been passed on to consumers. The Chinese government has also been cracking down on food safety violations in recent years, which has led to higher compliance costs for producers of frozen vegetables.

Source: IndexBox Market Intelligence Platform