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China: Shaanxi apples from non-optimized production areas face industry reshuffle
From October to November, Shaanxi apples enter the season of high sales. Due to the expansion of the planting areas, the total output of apples is still steadily increasing this year. However, the difference between apples from optimized and non-optimized production areas is huge. Shaanxi apples have been under tremendous pressure lately, because of the increased number of imported apples on the market.
The optimized production areas of Shaanbei and the Weibei plateau are the best areas for growing apples in the world and the scenery is truly unique. Sales of the apples from these areas are steadily rising. The price has increased from 8 yuan per kilo to 12 yuan per kilo. There are no issues with apples that are sold fresh from the farms, nor with those, that are stored to sell later on. In the meantime, apples from non-optimized areas, which comprise a minority of all apples, have been affected by many factors, such as old cultivation techniques, less investment and a lack of modern advanced facilities to maintain good quality of products. The quality of these apples is not up to par with those from optimized areas and for many years now, it ends with falling prices and unsalable produce. This year the situation was as dire as ever, with prices per kilo dropping 1 and even 2 yuan.
China Fruit Marketing Association experts believe that the poor sales of apples from non-optimized areas are not a bad thing, but an inevitable result of structural reforms in supply. The government doesn't want to support low-quality production. It's the invisible hand of the market that cleans up the space for the better quality apples from the optimized apple producing areas.
Source: Shaanxi Daily
Publication date: 11/27/2017
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