The price of tomatoes increased from 3 yuan [0.43 USD] per 0.5 kg in June to 5 yuan [0.72 USD] per 0.5 kg in October. What are the reasons for this development? The market position of tomatoes is quite strong this time of year, but the price is subject to major fluctuations. These are quite regular fluctuations from a market perspective, and the price is likely to increase even further during the Spring Festival period [February 5th, 2019].
Why does the price of tomatoes depend so much on the time of purchase? There are two main reasons: first, there is the seasonal character of supply and demand; and second, there is the cost price of production.
In general, tomatoes enter the domestic market in large volumes between June and September. Market supply is extremely large in this season, and greatly exceeds the ability of domestic consumers to absorb this volume. The price of tomatoes is quite regular in this period. The season has changed, however, and we have entered a colder period. People still eat tomatoes at the same rate, but the cost price of tomato production greatly increased because of the shift to greenhouse production.
Regular, open-field tomatoes from all production areas in the north and most production areas in the south, have almost completely disappeared from the market. Greenhouse tomatoes have taken over the market, although several production areas in south China still supply open-field tomatoes. Shouguang in Shandong and Bo'ao in Hainan supply winter season tomatoes. Their supply volume, however, is relatively small, while demand remains strong. Naturally, the price of tomatoes increases.
Source: Spring Talk Stories Baijiahao