Mandarin Oranges

So, where does this all begin? With the past of course. Linhai has been recognised for superior mandarin oranges throughout history (Produce Report 2023). Mandarin oranges are the natural evolutionary ancestor for most citrus fruits (Produce Report 2023). The original strain of mandarin grew wild in Southern China (Scigliano 2021). Their ease of access and delicious taste made them staples in East Asian culture (Produce Report 2023). It takes a precise climate for mandarin agriculture to produce the ideal fruits (Fruit Process n.d.). Linhai has the perfect climate for mandarin oranges to grow naturally, which contributes to it being the primary source of specialization with the highest production rate in its province (Produce Report 2023). The Government of China encouraged specialization by heavily investing in the mandarin industry in the 1990’s (Produce Report 2023).  Late October through the middle of November is the best time frame for mandarin harvest (Produce Report 2023).

Mandarin Orange exports to Canada begin in Linhai, Taizhou (China Daily 2023). From here, boxes of oranges are sent out in mass for Canadian consumers. Over 7,000 boxes (worth $30,000 dollars) were sent over in only one shipment in September of 2023 (China Daily 2023). These oranges are headed to purchasers in Canada.

Van Whole Produce is the leader in Canada for produce wholesale (Van Whole 2023). They sell to over 1300 produce stores across the nation (Van Whole 2023). This Vancouver based wholesaler has been open since 1884, with a focus on the sale of Asian goods and their distribution across our country (Van Whole 2023). Being Vancouver based permits an ease of access since the port of Vancouver is the most accessible route from Asia (Van Whole 2023). Over the company’s lifespan, they have received over 900 shipments from China (Panjiva n.d.). Van Whole is more commonly known for their Topsweet brand, which is the brand the mandarin oranges are sold under (Van Whole 2023). Pattison Food Group (PFG) buys wholesale goods from Van Whole Produce and sells to stores across Canada (Pattison Food Group 2022).

First let’s address the financials. In 2020, the price was 30 cents each with an expected rise in demand of 15% (Produce Report 2023). This works out to roughly 82 cents per kilogram (China Daily 2023). Orders have doubled those of last year (China Daily 2023). The average price of an orange export in 2022 was 5 yuan (one cent in Canadian dollars) per orange (21^st Century n.d.). So, if we estimate that one orange is $0.30 and a kilogram is $0.82 we can assume there are roughly 3 oranges per kg. At shipping cost $0.01 per orange the cost increases to $0.85 per kilogram. Earlier, it was mentioned that in one shipment Van Whole received 372,730 KGS of mandarins. By my estimation they would have paid around $316,820.50 ($0.85 x 372,730 KGS) for that shipment. A quick look at a local grocery store website told me that Chinese mandarins are sold at $9.99 per box, with each box being 1.82 Kg working out to $4.90 per Kg (Save on Foods 2023). This puts the total income from this Van Whole shipment at $1,826,377 ($4.90 x 372,730 KGS). I was unable to access the wholesale price for Van Whole but did find that the average wholesale price for mandarin oranges is around $2.20 US per Kg ($3.02CAD) (Selina Wamucii 2023). Resulting in an estimated profit of $1,125,644.60 for Van Whole Foods ($3.02x 372,730 KGS). This is nearly a 300% profit for the company and extraordinary profit from only one order. I was able to find that the Zhejiang workers would make at least minimum wage, which was reported at 2,280.000 RMB in 2022 (around $428 CAD per month) (CEIC n.d.). This was complicated to put into perspective because the wage assessments in China are regional and complex (Global Affairs Canada 2021).

In my opinion, based on the information provided it seems like their is an unreasonable profit made by the wholesaler in this case. This to me, shows the dynamic to be the corportation in overwhelming power. It is important to note that

Canada and China have had an agreement to strengthen trade between them since 1973, which includes the ‘Most Favoured Nation Treatment’ conditions on taxes and charges (imports, exports, customs etc.) (Government of Canada 2019).  The Most Favoured Nation Treatment is an anti-discrimination policy created by the World Trade Organization (WTO) to ensure that there is a standard for trade across all WTO members, meaning they all have the same rates when it comes to fees with few exceptions (WTO 2023). These two things together mean that Linhai mandarins are well protected for Canadians in the trade world. They remain well known for their quality and their price cannot be unreasonably spiked. This may add to the strenth of power for Linhai producers, who are protected somewhat by trade regulation.

I think the most I could recommend would be for the corporations to be more forthcoming about what precautions they are taking to ensure worker safety all the way down the line. Their was very little information put out that spoke to their accountability as a global actor, but it is unclear wether this is intentional.

References

CEIC. (n.d.). Standard of monthly minimum wage: Zhejiang. https://www.ceicdata.com/en/china/standard-of-monthly-minimum-wage/standard-of-monthly-minimum-wage-zhejiang

China Daily (2023). Linhai Mandarin Oranges exported to Canada. http://taizhou.chinadaily.com.cn/2023-09/21/c_923704.htm

21st Century Maritime Silk Road Website. (n.d.). Zhejiang’s first batch of exported Mandarin Oranges in 2022 targets North American markets. Xinhua Silk Road – Belt and Road Portal, China’s silk road economic belt and https://en.imsilkroad.com/p/330645.html

European Commission. (2023). Geographical Indications and quality schemes explained. Agriculture and rural development. https://agriculture.ec.europa.eu/farming/geographical-indications-and-quality-schemes/geographical-indications-and-quality-schemes-explained_en

Fruit Process. (n.d.). Cultivation Conditions of Mandarin Orange. Home | Fruit Processing Machine Suppliers, manufacturer. https://www.fruitprocess.com/en-us/fruitprocess-news/cultivation-conditions-of-mandarin-orange/

Global Affairs Canada (GAC). (2021, November 1). Wages and benefits in China. GAC. https://www.tradecommissioner.gc.ca/china-chine/wages-salaires.aspx?lang=eng

Government of Canada / Gouvernement du Canada. (2019, March 1). Trade Agreement between the Government of Canada and the Government of the People’s Republic of China. View Treaty – Canada.ca. https://www.treaty-accord.gc.ca/text-texte.aspx?id=103001&Lang=eng

ImportGenius. (2020, December 9). Linhai Mohong Trading Co Ltd: See recent shipments. https://www.importgenius.com/suppliers/linhai-mohong-trading-co-ltd

Panjiva. (n.d.). Van Whole produce, 830 Malkin Avenue, Vancouver, BC V6A 2K2, Canada: Buyer report. https://panjiva.com/Van-Whole-Produce/59927149

Pattison Food Group. (2022, April 4). Wholesale division. https://pattisonfoodgroup.com/wholesale-division/

Produce Report. (2023, October 19). Linhai mandarins begin export season, volume to rise 15%. https://www.producereport.com/article/linhai-mandarins-begin-export-season-volume-rise-15

Save On Foods. (n.d.). Fresh – mandarins. Online Grocery Shopping with Delivery & Pickup. https://www.saveonfoods.com/sm/pickup/rsid/2213/product/fresh-mandarins-id-10483

Scigliano E. (2021). Origin of mandarin oranges. Origin of Mandarin Oranges | Natural History Magazine. https://www.naturalhistorymag.com/samplings/303890/origin-of-mandarin-oranges

Selina Wamucii. (2023). China Mandarin Oranges (tangerines And Clementines 2023 Retail Prices) Selina Wamucii. https://www.selinawamucii.com/insights/prices/china/mandarin-oranges-tangerines-and-clementines/

Van Whole Produce. (2023). Van Whole Produce Turns 30! https://www.vanwhole-produce.com/wp-content/themes/vwf/data/brochure.pdf

Volza. (2023, August 10). Linhai Mohong Trading Co Ltd’s – buyer, suppliers, full export import details. Volza. https://www.volza.com/company-profile/linhai-mohong-trading-co-ltd-8764925/

Western Grocer. (2023, March 14). Meeting needs, present and future. https://westerngrocer.com/meeting-needs-present-and-future/

World Intellectual Property Organization.(WIPO) (2023). How are geographical indications protected?. How Are Geographical Indications Protected? https://www.wipo.int/geo_indications/en/protection.html

WTO. (2023). Understanding the WTO – principles of the trading system. WTO. https://www.wto.org/english/thewto_e/whatis_e/tif_e/fact2_e.htm#:~:text=1.,for%20all%20other%20WTO%20members.