In the USDA Foreign Agricultural Service GAIN Report dated 21 December 2015 (Report # CH15066) which examines annual Chinese citrus production, it was stated that “Tangerine/mandarin farm gate prices in Hunan province were quoted at around RMB 1.80 per kg, an increase of nearly 30 percent from the previous year, according to field observations by Post. In other main producing areas where good harvests are expected, mandarins were sold at prices lower from the previous year’s levels.”
Tangerines (or mandarins) are DFM’s most important product. DFM claimed in their FY2015 Annual Report that they harvested 142,000 tonnes of tangerines that sold for revenue of RMB 588.7 million. That works out to be RMB 4.15 per kg. That represents 2.3 times the farm gate market price. On that basis alone, the potential revenue impact on tangerines is an overstatement equivalent to AUD 65 million (RMB 333 million).
DFM Price at posting:
$1.02 Sentiment: Sell Disclosure: Not Held
