When the weather turns colder, the markets for fresh peppers in most areas becomes boiling hot: not only is the price high, but farmers sell large volumes, and traders make large profits. Some traders say that market conditions will not be that bad this year and they increase their purchase volume to improve their profits. However, exactly why were market conditions so good in August? And will these conditions last?
The prices of fresh pepper drastically increased in many production areas throughout China in recent weeks. Data shows the following developments: the purchase price of green peppers increased by 0.6-0.8 yuan [0.09-0.12 USD] per kg; the purchase price of red peppers increased by 0.8-1 yuan [0.12-0.15 USD] per kg. The longer these peppers are on the market, the more their price increase surprises people. The reasons for this development are as follows.
First, some pepper varieties have a strong market share. People are familiar with them. These peppers, such as Yanhong [Bright Red] and Jiaozhongyu [Hot Chinese Jade], sell well. People fought to get their hands on these pepper varieties, which increased overall market activity. Second, some production areas suffered from natural disasters. Jinxiang in Shandong, for example, suffered from excessive rainfall. Pepper plants lost their leaves and died. Third, the overall surface area devoted to dried pepper production greatly decreased this year. This softened the impact of dried pepper on the fresh pepper market.
Source: Shanxi News Online - Shanxi Farmer's Report