The retail season of Chinese Fuji apples from storage is coming to an end in April. The market for apples from storage has been a seller's market. Farmers everywhere were reluctant to sell. In the last few years the market conditions for apples from cold storage have not been great. The average price for apples from storage in April last year was around 3 yuan [0.45 USD]. Both apple traders and apple farmers had difficulty making a profit and often suffered financial loss instead. The current market conditions are surprisingly good, and one can not blame apple farmers and apple traders for trying to make a profit. However, the current price of 5 yuan [0.75 USD] presents a risk to wholesale dealers as retailers start to lose their enthusiasm.
Some apple buyers stated that the current price of apples from storage is the highest it has been in 5 years. Buyers are in a difficult situation. The purchase price is too high, and when transport and other costs are added, then there is no room left to make a profit.
When the retail price is too high, then consumers will lose their enthusiasm for apples. Consumers can easily switch to other fruits. If the apple trade meets unfavorable conditions, then retailers are unable to make a profit, and they lose their enthusiasm. This will certainly affect future conditions in the apple market. People in the industry stated that the high price of apples from storage this year will likely mean that the price of fresh apples this autumn will remain high as well.
Source: Yantai Times