The Chinese market price of peppers rapidly rose within a single month. The fastest-rising prices include the prices of Heaven Facing peppers and Beauty peppers. These two nearly doubled. The pepper price recently began to readjust. The prices of Heaven Facing peppers and Beauty peppers already dropped to 17 yuan [2.46 USD] per 0.5 kg and are expected to drop to 15 yuan [2.17 USD] per 0.5 kg after the weekend. Will the pepper price rapidly rise again in the near future? People in the industry predict that the pepper price will not show a significant rise before October.
The annual demand for Heaven Facing peppers and Beauty peppers has been stable until now. The price also showed no significant fluctuations in the last two years. The sudden price increase last month was the result of a decline in production volume this year as well as a temporary supply shortage near the end of the season. The retail season of peppers in Shandong production areas entered the final phase in the end of May and the beginning of June. The overall production volume of peppers in Shandong decreased this year. The overall demand, however, is as big as always. The price therefore naturally increased. The pepper price recently declined because production areas in Hebei, Shanxi, and Inner Mongolia began to supply the market with large volumes of pepper.
The price of Heaven Facing peppers and Beauty peppers have already returned to regular levels comparable to previous years. The pepper production volumes in Hebei and Shanxi are extremely large this year. The pepper price is expected to drop even further. Since market supply will be relatively abundant in the second half of this year, the price is unlikely to show an upward trend before October.
Source: Beijing News