Why Lunar New Year has driven up fruit prices

As the Lunar New Year approaches, Australian fruit producers are gearing up for one of the busiest times of the year.

At the centre of these celebrations are North Queensland lychees and Tasmanian cherries, which serve as symbols of prosperity and good fortune in Asian culture.

Lunar New Year, also known as Chinese New Year, has gained wide popularity in Australia, resulting in a surge in demand for more exotic fruits.

Growing market for exotic fruits

Daniel Filipe is the e-commerce and wholesale manager at Fruitezy, a Sydney based fruit and vegetable wholesaler.

“Lunar New Year has become a very important part of our marketing calendar and overall planning,” he said.

“It’s become a very, very close second to Christmas in terms of importance.”

He said exotic fruits like lychees and cherries are among the most sought-after items.

“We’ve seen a huge demand increase for these fruits, driven by the growing Asian community in Australia and an influx of tourists during this period,” Mr Filipe said.

He said this has become most apparent in the last 10 to 15 years, and he sees this as an exciting opportunity for the industry.

“It’s awesome to have another major event Australians can look forward to,” he said.

“It’s a multicultural celebration that brings people together, and it’s great to see the role these fruits play in making that happen.”

Demand for Tasmanian cherries

Matthew Griggs is a packing shed manager at Lucaston Park Orchards, which produces cherries in southern Tasmania.

“Lunar New Year is a huge driver for the cherry sales … there’s certainly an increase in demand, which can also drive up the price,” he said.

He said the timing of cherry harvest with the cultural celebrations are very well matched, which allows the product to stay fresh from Tasmania to China.

“We’re harvesting one day, we’re packing it the next day, it’s on the truck that same day sometimes, it goes on the boat to Melbourne and then it’s on the aeroplane that afternoon,” Mr Griggs said.

“Within three to four days, we’ve got fruit from the tree all the way over to the customer in South-East Asia.”

Tasmanian cherries are well regarded in China, praised for their size, sweetness, and vibrant colour.

Zhongyue (Jack) Wang, travels the world to find top quality cherries; importing and selling them in China.

“Tasmanian cherries are the best in the world,” Mr Wang said.

“They are crunchy, they are sweet, the best thing is the flavour.”

Mr Wang imports about 70 tonnes of Australian cherries each year but expects this figure to grow given the increasing demand during Lunar New Year.

“We like red, red means lucky.

“We like the gifts being red, cherries are red, so they are perfect for gifting,” he said.

Expensive lychees this Lunar New Year

However, a challenging growing season in Australia has impacted lychee pricing and premium supply.

Larry Griffin, general manager at Simon George and Sons based in Townsville, said early rainfall in North Queensland disrupted lychee production.

Some areas in the region recorded over 400 millimetres of rain in December alone, which has had an unfavourable outcome for some crops.

At retail level, some lychee varieties are selling for over $20 a kilogram, and Mr Griffin said prices for the premium product is not too far off 40 per cent higher on last year.

“It’s really affected how much product can be picked and particularly the quality of the product being sent into your retail stores,” he said.

“Compared to maybe this time last year, we’re looking at 30 to 40 per cent [reduction] in yields for the growers we deal with.

“It’s definitely affected the top-end pricing, so the really nice stuff that you want for Lunar New Year and Christmas is at a premium.”