Production season 2016-2017 ends dismally for Hainan chilis

"Worldwide, the 2016-2017 production season of chili peppers already appears to have ended in April because of the dismal market. 80% of Hainan's chili farmers have now experienced severe losses, as the revenue does not cover the costs. The highest price of Hainan chili peppers between December 2016 and January 2017 was 1,8 yuan/500g. After that, it dropped to 1 yuan/500g. After the spring, the price continued to drop to 0,7 yuan/500g. Compared to 2015-2016, the market price has decreased 100%," according to Mr. Liu Tong from Hainan Hefeng Century Agricultural Development Co Ltd.

Employees are inspecting chili peppers

The 2017 Hainan Winter Vegetable Demonstration at Hainan Hefeng Century Agricultural Development Co., Ltd.

"The main reason that the Hainan chili pepper market is so bad is the increase in the production volume and the rise in product quality. Even though, in the past year, the total international production area of chili peppers did not change very much, the relatively high temperatures have caused a high yield in the northern production sites, and these are the main supply areas for Hainan chili peppers. Moreover, the government has given the producers help, such as subsidies to build winter greenhouses. This ensures the production volume and quality of northern chili peppers."

Chili pepper greenhouses

Industry experts and leaders are inspecting the greenhouse

"We are located in Changjiang, Hainan, and have 70 hectares (700 mu) of greenhouses, of which 40 hectares are owned by us, and 30 hectares by farmers. We grow two different breeds, green peppers and Gansu peppers. Our high quality peppers are sold through traditional channels under the brand 'Pepper King'. Apart from selling directly to distributors and supermarkets in Zhengzhou and Xi'an, we also supply the Shanghai market indirectly through the Shanghai Vegetable Group and the Shanghai Municipal Committee. As the company with the biggest production area in Hainan, in the future we will increase our product quality and variety, by constantly introducing new technologies and new varieties, to keep a strong position on the market."

Mr. Liu Tong
Hainan Hefeng Century Agricultural Development Co., Ltd.
http://www.0898hf.com/
Phone: +86 155 0179 7330
Email: liutong1026@163.com