Three main reasons behind price increase

China: Shaanxi apple price doubled this year

The overall surface area devoted to apple plantation in Shaanxi reached 733 thousand hectares last year. This is 60% of the 1.2 million hectares devoted to apple plantation nationwide. The market demand for top-quality apples was strong this year and the price significantly increased in comparison with previous years. Many production areas saw record prices this year.

Reduced production due to natural disasters
Frost in early spring reduced the apple production volume throughout China, though different apple varieties were affected to various degrees. The provincial Department for the Fruit Industry reported that the overall apple production volume in Shaanxi decreased by 20%. Not only did the production volume diminish, but the apple quality also suffered. Many apples are not as colorful or bright as in previous years.

Industrial upgrade
Shaanxi province has encouraged the apple industry in recent years to upgrade, standardize orchards, and modernize management methods to optimize production. Advanced plantation management technology is now widespread, which has resulted in product quality improvement. This further raised the price of apples this year.

Pre-order
The effect of apple contracts sold at the end of 2017 becomes visible as capital enters the market. Purchases based on contract delivery terms further raise the price of apples.

Source: Shaanxi Media Online


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