At KingStar Food, we take pride in being a Chinese supplier of canned asparagus to partners in Europe, Australia/New Zealand, and the United States. As we approach the 2025 production season (April-August), we want to provide a transparent update on challenges that may affect our supply and pricing—and how we’re addressing them to support your business.
Weather Challenges in Shandong
Shandong Province, a cornerstone of China’s asparagus production, faced excessive rainfall in 2024, impacting crop yields. We anticipate a 20-30% reduction in output for the 2025 season. Since Shandong contributes roughly half of China’s asparagus—estimated at 25 million kilograms annually—this shortfall will influence our canned asparagus production. Additionally, production costs are set to rise by 10-15%, driven by tighter raw material supplies and related pressures.
One key factor is the cost of raw asparagus. In 2024, our factories acquired raw materials at an average price of RMB 8.13 per kilogram. For 2025, we project this to increase to a range of RMB 9.5-10.5 per kilogram due to reduced supply and heightened demand for available crops.
What This Means for Your Market
China exports approximately 10-15 million kilograms of canned asparagus annually. A 20-30% yield drop in Shandong could reduce this by 1-3.75 million kilograms, or 10-25%. Here’s how it might affect you:
United States: In 2023, the U.S. imported $143 million in canned asparagus, with China supplying 137,658 kilograms (WITS data). A decrease from us could tighten supply, particularly if Peru, your primary source, can’t fully bridge the gap—especially with potential tariffs looming in 2025.
Europe: With local production in countries like Germany and Spain supplemented by imports, a reduced supply from China may impact availability and pricing for your markets.
Australia/New Zealand: As regions dependent on imports, you could experience slight delays or cost adjustments if supply chains tighten.
The rising raw material costs—from RMB 8.13/kg in 2024 to RMB 9.5-10.5/kg in 2025—contribute to our overall production cost increase. We’re working diligently to minimize these increases and maintain competitive value for you.
Our Response Strategy
We’re taking proactive steps to ensure continuity for your orders:
Diversified Sourcing: We’re expanding procurement to Henan and Fujian provinces to offset Shandong’s shortfall.
Optimized Production: We’re refining our processes to maximize output from available raw materials while upholding quality standards.
Market Focus: We’ll prioritize shipments based on your needs, whether it’s Europe’s growing demand or ANZ’s steady requirements.
Long-Term Planning: We’re exploring greenhouse cultivation to reduce future weather-related risks.
Partnering for Success
We value our collaboration and invite you to work with us to navigate this season:
Secure Your Supply: Place early orders to reserve your 2025 volumes and pricing.
Tailored Options: Interested in seasoned or customized products? Let’s discuss solutions for your market.
Share Your Plans: Provide your forecasts so we can align our production and delivery schedules.
Contact us at sales@kingstarfood.com to explore how we can support you.
Looking Ahead
The global canned asparagus market remains strong, with a projected 4.8% annual growth rate through 2030 (Grand View Research). While this season poses challenges, our commitment to quality and reliability endures. Competitors like Peru may step up, but their capacity constraints ensure China—and Kingstar Food—remains a key player in your supply chain.
We’re here to keep your business moving forward. Reach out today to discuss your 2025 needs—together, we’ll make it a successful season.
Stay Informed
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