Major Chinese greengrocer chain Pagoda is hoping to purchase Tasmanian apples this year and says the fruit would be a similar match to the other products in store.

A blog post by Apple and Pear Australia Ltd (APAL) industry services manager Annie Farrow said Pagoda comprised an extensive chain of small greengrocer style stores, although it specialized in fruit and did not carry vegetables.

The company was established in 2001 and has undergone rapid expansion in recent years. It now has nearly 1,000 outlets and is currently opening new stores at a rate of 50 outlets per month.

"We pitch Pagoda as being 'everyone's home garden'," director of overseas procurement Frank Hong said to a delegation of horticultural growers, exporters and industry representatives in late 2014 as part of a Victorian government trade mission.

Following up on the mission, Frank and the company's head of procurement, Qidong Yu, visited Australia in Jan. 2015 where they met with APAL representatives.

Apples account for about 16% of sales value – the largest single fruit item – but this represents high volume at relatively low value as about 95% of the apples sold by Pagoda are domestic Fuji.

For the 5% that is imported, Pagoda sources from Japan (Fuji), New Zealand (Gala, Envy and Pacific Rose), the U.S. (Red Delicious), Chile (Gala) and South Africa (Fuji).

Frank suggested that imported fruit from Australia was not yet well-developed, but added that in 2015 the company intended to import apples from Tasmania.

"Consumers want flavour," Frank said.

"Colour and size are important but eating quality is our key focus and we are looking for crisp and flavoursome apples. But I am concerned about the Australian price point."

Pagoda's apple sales are increasing along with all fruit sales, but table grapes and cherries rank as more popular when in season, followed by apples and then citrus.

Less than 5% of the imported fruit is purchased directly from growers, with the majority sourced from wholesalers in the Guangzhou market.

"There is an increasing desire to source direct from growers. This is the reason for my visit to Australia and also New Zealand," Frank said.

"We are building a 10,000 square-metre distribution centre in Shanghai and this will mean some shift to sourcing through the Shanghai wholesale market and using the Shanghai port."

www.freshfruitportal.com