The price of Chinese squash showed an upward trend this week. The Chinese squash currently on the market are mainly supplied by production areas in Hainan. The white squash cost around 1.5-1.6 yuan [0.22-0.24 USD] per 0.5 kg, while the green squash cost around 2.4 yuan [0.36 USD] per 0.5 kg. The main reasons for this development are as follows: first, the supply volume from production areas is small.
Traders explained that the overall surface area devoted to Chinese squash plantation declined last year and the supply volume therefore decreased this year. The price was low last year and many farmers had to let their crop rot because they could not find buyers. They therefore decided to reduce the surface area for Chinese squash plantation, which reduced the overall supply volume, and this in turn caused the price increase this year. Second, natural disaster affected production. The supply volume of Chinese squash from Hainan is usually between Chinese Spring Festival [February 5th, 2019] and late April. This year the temperatures were high and the Chinese squash entered the market one month early. The end of the supply season is also early this year, but the supply from Guangdong and Guangxi will only enter the market in another 10 days. This means that supply is temporarily short and this drives the price up.
The price this year is also higher than last year. The reasons for this situation are as follows: first, the surface area devoted to Chinese squash plantation declined. Second, Chinese squash production areas were hit by hurricane winds this year and the damage was extensive. Then the weather improved and Chinese squash entered the market one month early, which also means that supply finishes early. All these factors keep the price high. The price is expected to decline again when temperatures continue to rise and supply from Guangdong and Guangxi will enter the market. The price should be back to normal by May.
Source: moa.gov.cn