China: Wholesale veg prices fall 35% at Xinfadi market (Beijing)

In March last year, after being badly affected by the weather, all supply chains in the production locations for vegetables in the North were having difficulties. This pushed up prices to an historic high. However, after the Spring Festival this year, the wholesale price of vegetables has been backsliding. Statistics from Xinfadi market illustrate that, in comparison to the price for vegetables last year, the weighted average of all price was reduced by 35.54% last Friday. The price is now the lowest it has been in recent years and it seems that this phenomenon will continue during the whole season.

Because market supply chains have gradually moved north, the market time for spring vegetables might come earlier. This year indicators show that northeastern producers have expanded their product line, and that temperatures in the northeastern regions are once again unusually high for this time of the year. The supply of vegetables in springtime will therefore increase, and the timeframe during which they can be sold will have a small overlap with the timeframe that winter vegetables enter the market. The decrease in prices, which has been going on for several weeks in a row, is only getting worse and shows that vegetables were harvested early this spring. It is possible that supply will exceed demand in the later stages.