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China: Veg prices in the north will slightly increase in lead up to Spring Festival
According to Sannong Zhongguo, vegetable markets everywhere enter their peak season at New Year. Based on patterns from previous years vegetables from the north will this time enter a phase of "seasonal" price increases. Although there has been an increase in vegetable prices recently, the speed of that increase is not great. The price of vegetables in the Beijing area has maintained stability since the start of last year.
The price of vegetables in Beijing has recently shown three characteristics. First, there is an adequate amount of stored winter vegetables, like onions, potatoes, Chinese cabbages, and carrots. Therefore, their price is stable and shows little movement.
Second, the area devoted to greenhouse vegetables in the north is relatively large. When the weather is warm, then the price will drop to some extent.
Third, changes in the southern vegetable production areas will affect the price of vegetables in the north. When production areas in Jiangsu, Zhejiang, and Fujian extend or delay the period in which they bring vegetables on the market, then vegetable prices in Beijing will be affected. This year, the southern supply of vegetables was sufficient and stable, which slowed down the price increases.
In addition, in one more month, the Spring Festival will arrive. Prior to this, there is a period in which vegetable prices will certainly still increase. Transportation costs increase the price of southern vegetables, and northern vegetables have an increased production cost, therefore the price of vegetables will still show a "seasonal" increase.
Source: CNR Online
Publication date: 1/5/2018
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