Lychee producers and vendors in Guangdong cities of the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) are actively diversifying their export markets by broadening sales channels and seeking higher certification standards, in an effort to counter the impact of the United States’ tariff measures.  

Guangdong is one of the largest lychee production bases in the country, with output and value ranking first nationwide. The province is expected to produce 1.6 million tons of lychees this year, with the western part of the region being the major contributor, accounting for about 64 percent.

“This year, our lychee exports to the Southeast Asia market are expected to increase by 100 percent year-on-year. The Middle East region is also forecast to see a 20 percent growth,” said Li Zhuofeng, marketing director of Foshan-based Guangdong Zungly Agricultural Group Co Ltd.

READ MORE: AI pivotal to modernizing agriculture

Li said the US used to be its major export destination, but the company is now actively exploring emerging markets, including Southeast Asia and the Middle East, due to the country’s trade policies.

“We have diverted much of our export business from the US to Southeast Asia, mainly Malaysia and Indonesia,” he said, adding that places with a large number of overseas Chinese are where the company is focusing on, as overseas Chinese are the main consumers of Chinese lychees.

Chen Longxing, who is in charge of Longji Lychee Cooperative in Boluo county, Huizhou, said the company has secured 2,000 tons of overseas orders for lychees so far this year.

“We have seen more international clients come to us for business this year, such as from Canada and Australia, as sales channels have widened as a result of our intensified efforts,” Chen said.

He also said that differences in inspection standards between the customs controls of different countries present a major challenge to the company’s internationalization drive.

Ye Xianliang, president of the Lychee Association of Zhenlong town in Huizhou, said the association is working with the Hong Kong Organic Certification Centre to ensure lychees produced around the town can gain Hong Kong certification.

“With new planting technologies, our lychee products are upgrading from national standards to international standards. Hong Kong standards, which are in line with international standards, can help us get easier access to a broader range of markets,” he said.

Meanwhile, some orchards in Guangdong said they have reduced their lychee exports in recent years due to the COVID-19 pandemic, which paralyzed international travel, and changes in the international trade environment.

Zeng Yani, an agro-technician at Xili Orchard in Shenzhen’s Nanshan district, which operates 2,000 mu (or 133.4 hectares) of lychee farmland, said the orchard used to export lychees overseas, mainly to the US and Southeast Asia, before 2018, but it has shifted its sales to the domestic market in recent years.

READ MORE: Lychee freshness sees quantum leap

While acknowledging that the disruption caused by the coronavirus pandemic is one of the reasons behind the changes, Zeng also highlighted the impact of the geopolitical headwinds.

“The international trade environment has become more uncertain compared to previous years. The rise in tariffs will make our products less competitive in overseas markets. Therefore, we are diverting our business to the domestic market,” she said.

Zeng added that the orchard is expected to produce 350,000 kilograms of lychees this year, which is on par with its average annual output.

Contact the writer at sally@chinadailyhk.com