Conditions were not bad this year when Shatang oranges entered the market. The price per 0.5 kg exceeded 4 yuan [0.58 USD] in production areas. This situation changed around New Year's Day, traditionally a period when the price increases. The market conditions of Shatang oranges deteriorated as a result of cold weather. Oranges that were not properly covered suffered from frost damage, while the cost price of covered oranges increased.
The weather created much uncertainty in the Shatang orange market. Many farmers preferred to sell their oranges sooner rather than invest in proper frost protection for the oranges. Fruit traders are afraid to buy oranges whose quality suffered from frost. Many traders suffered great losses last year when they bought oranges with frost damage. Poor quality also deters consumers and sales conditions become problematic.
Source: iFresh Fair