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China: How has the kiwi market changed in recent years?
In recent years, the rise of new technologies such as e-commerce and cold chain logistics have made rare local products available at the national market level. Nowadays, they can be quickly delivered to any urban customer. Kiwis became very popular on the Chinese market for the following reasons: They're easy to preserve, easy to transport and very tasty. However, the production area of kiwis has expanded rapidly in recent years and that's led to an increased fluctuation in kiwi prices.
In 2017, the market price of kiwis showed a fluctuating tendency. When kiwis first appeared on the market, their highest price was between 7 and 8 yuan per kilo. During the next few years, there was a flourishing period for the kiwi trees and the output of kiwis sharply increased. As a result, the prices fell significantly; the lowest price reached being 2.2 yuan per kilo. Recently, the price has increased again, but it has only reached 4-4.5 yuan per kilo. The weather was too rainy during the National Holidays and the harvest was delayed. After the Holidays, all the farmers harvested their kiwi crops at the same time, which affected the purchasing price.
The average purchasing price of kiwis on the national wholesale agricultural product market (000061 stock) fluctuates depending on the season. Every August, kiwis begin to arrive in Chinese markets and are available up until the July of next year. Based on our knowledge of price fluctuation, we can divide the kiwi market into three stages: every year the first stage lasts from August to November. This is the time of harvest and it is when kiwis are coming onto the market. In this period, the wholesale market price of the kiwi is relatively stable, about 6 yuan per kilo.
From December to April, kiwi fruits are stored in the cold warehouses. During this period, the price increases gradually. That is mainly due to the storage expenses and a gradual decrease in supply. Kiwis that were produced in China are mostly consumed by May-July. As a result, the imported kiwi fruits from the southern hemisphere, New Zealand and Chile, begin to supply the market and affect the price of domestic kiwis. This is when the wholesale purchasing price of kiwis is highest and also when it fluctuates the most.
Source: Bric Agricultural Data
Publication date: 11/22/2017
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