Core Insights - The article discusses the significant influx of Chilean cherries into the Chinese market this winter, leading to a decline in retail prices [3][4]. - Despite the increased supply, many wholesalers are not profiting due to falling prices, with only a few large wholesalers managing to maintain or slightly increase profits [7]. Supply Dynamics - Chile is preparing for a record cherry production of approximately 655,000 tons (equivalent to 13.1 million boxes) for the 2025/26 season, with over 90% destined for China [4]. - The favorable climate in Chile has contributed to a year-on-year increase in cherry production [6]. - Logistics improvements have reduced shipping times by 4-5 days (to 23 days), with sufficient shipping capacity and a decrease in air freight usage, leading to a 10%-20% reduction in shipping costs per container [6]. Price Trends - Wholesale cherry prices have dropped significantly, with decreases of 15%-25% compared to the same period last year, while retail prices have also declined but to a lesser extent [4][5]. - Specific price examples include a drop in the price of 3J cherries from 160 RMB/kg in mid-November to 90 RMB/kg by December 23 [8]. Market Competition - Increased competition among channels has led to retailers offering discounts, with e-commerce platforms and chain supermarkets stocking up and providing subsidies [6]. - The price of 5 kg packages has decreased by 20-40 RMB compared to last year, making them more appealing for family consumption and accelerating sales [6]. Wholesaler Profitability - Despite the increase in cherry volume, most wholesalers are experiencing reduced profitability due to lower prices, with many small and medium-sized wholesalers facing losses [7]. - The challenge of maintaining margins is compounded by risks related to inventory and spoilage [7].