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China: Fewer visitors to fruit wholesale markets

People in the fruit industry share the feeling that business is not the same this year.

First there is the problem of unmarketable fruit in many production areas. Furthermore, prices constantly drop. In addition, the number of visitors in wholesale markets decreased, regardless of whether the wholesale markets are in Guangdong, east China, or central China.

What causes this situation?

The growing number of agricultural wholesale markets divides the number of visitors
Even when it is difficult to do business, people still try. This is the case for agricultural wholesale markets. More and more of them appear everywhere. Visiting buyers have more options and as the overall number of visitors is divided over more agricultural wholesale markets, there are fewer visitors in each individual market.

The growing number of independent entrepreneurs helps develop a base market
Previously, it was common in wholesale markets for friends to share a stand, but now people are more separated and set up their own stand. Even though there are large crowds of visitors, the number of traders in the market also increased.

Direct purchase from production areas becomes more common
Everything happens online and that helps to "decentralize" business. Many production areas transport directly to second- and third tier cities. 

Direct online retail is flourishing
E-commerce and WeChat shops develop quickly in the fruit industry. Online advance sales, supply and demand facilitators, and internet auctions develop at a fast pace. The products travel from farm to table without the interference of wholesale markets.

Farmers return to their hometowns, and demand for agricultural products in cities is in decline
Many national policies encourage farmers to return to their hometown and start their own business. The rural landscape is changing. Many farmers have already returned to the countryside, and the demand for agricultural products in cities is in decline.

Source: Fruit Service Center


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