In south China, the mostly mountainous areas are suitable for all kinds of fruit plantations, and fruit is generally quite cheap. Take for example the pomelos that are currently entering the market in bulk. The price is low at only several cents per kg, and still traders are unable to sell them. Some of the pomelos are rotting because they can not be sold. Farmers are extremely worried. In north China, however, where winter has arrived and temperatures gradually fall, the pomelo is far from cheap. How is it possible that pomelos are left to rot and consumers do not buy them?
The price of pomelos was decent when the fruit entered the market in small volumes, but once they entered the market in bulk, supply greatly exceeded demand, and the price dropped. This is the main reason why pomelos are unmarketable.
The cost price for pomelos is relatively high because they have to be transported from plantations in the south to markets in the north. There are many middlemen who eat into the profit margin and there is little left for the farmers or the markets. This is the main reason why the price of pomelos in the north is so high.
High rents and labor costs
Storage rentals in major cities are high and so are labor costs. This all adds to the cost price, which is of course reflected in the high retail price.
Many pomelos suffered from split skin as a result of typhoons in south China this year. This naturally influences the retail conditions as the fruit can not be stored very long in this condition. Traders will not consider fruit in this condition unless it is extremely cheap.
Source: Sannong Fengcai