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China: Fruit prices continue to rise, but farmers don't see the profits

A report on CCTV-2 stated that the wholesale prices of apples and pears has recently doubled. Add to that the retailers' margins and who knows how expensive apples and pears may be by the time they reach the consumers. Most consumers look at the soaring price of fruit and think that farmers must do excellent business. However, farmers are complaining about difficulties in the fruit industry. According to farmers the wholesale price continues to rise, but so does the cost price of fertilizer, pesticide, and seeds.

Furthermore, the cost price of transport is growing as well. Distribution becomes more expensive every year, not to mention the amount of fruit that is damaged during transport. All of these costs add to the retail price. Wholesale traders add that the apples they bought last year have been in cold storage, and the cost price of cold storage is rising as well.

Fruit rarely goes from farm to kitchen, but passes through a number of wholesale traders and retailers along the way. Every step in this supply chain adds to the final price.

Source: Fruit Service Center


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