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China: Fruit sales move in opposite directions
According to the Voice of Rural China, some fruits are selling so poorly that growers are leaving them rot in the ground. The prices on the urban markets, however, have not been dropping at all, and some are even unusually high.
For many farmers, the fruit production is undertaken by their own household on a very small scale. They are unable to fight risks, and do not have the ability to negotiate their prices, so many are facing problems. Once things change from the purchasers' side, for example when they do not accept a good price, and even depress prices, it can give the farmers a rough year, where they are unable to earn money, and might even lose their businesses. The large scale trade organizations, on the other hand, are unable to cooperate with these farmers, because their supply is just too small, and can be sold out in just one day. This is not in the interest of the organizations.
The key to solving this problem is building a stable, effective information mechanism. Farmers, for example, can unite, and upscale the production. Supply and demand need a good foundation with a quality that is up to standard and a stable supply. Expanding production also offers the farmers the ability to negotiate on prices. Simultaneously, farmers can contribute to commercial areas as well.
Publication date: 1/18/2018
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