Chinese Spring Festival [February 5th, 2019] is over, and the overall price in the "vegetable basket" of Shandong remains relatively stable. Some vegetable prices show a stable rise. In Boshan District of Zibo City, however, the price of vegetables is still in "Spring Festival mode" as a result of market demand and weather conditions. The price remains high and shows no sign of coming down.
Boshan is also known as the "vegetable basket" of Shandong. There are several reasons why the price remains high in this area: first, cold weather prior to Spring Festival led to cost increase for storage, transport, and retail of vegetables. At the same time, vegetables in greenhouses did not receive enough sunlight which delayed their development.
The production volume and product quality both declined. As the cold weather continues the supply of some vegetables comes up short, while market demand remains strong. The price therefore remains high. Second, the vegetable market is still in "Spring Festival mode". Market demand grows during the festival period and the price then rises. While demand is still strong after the festival, many farmers and traders have not yet returned from their holiday. In this demand-driven market the price remains strong. Third, snowfall and frost shortly after Spring Festival ended further influenced the regular production and transport of vegetables. The weather also increased the cost price of distribution and labor, which pushed the price up even higher.
The prices in Shandong's "vegetable basket" are expected to come down now that the weather is gradually warming up and production will resume regular operations.
Source: Chinadevelopment.com.cn