Since the beginning of this year, vegetable prices, in general, have been falling. Tan He, an analyst from Zhuochuang Information believes that there are three main reasons for the overall decline in vegetable prices this year.
Although some regions experienced dramatic changes in temperature and strong convective storms this spring, in general, no extreme disasters occurred, so the production of vegetables was able to recover quickly, and the overall supply was adequate and secure.
After the vegetables produced last winter and this spring managed to guarantee the supply in the first quarter, it has now entered summer, and the temperature is rising. Therefore, vegetables are growing at a relatively fast pace, and most of them are open-field vegetables. This, coupled with the fact that there are many varieties available, has driven vegetable prices to drop again seasonally.
Moreover, the number of greenhouses in China has increased in recent years, and greenhouse technologies have become more and more mature. When there are low temperature and sunlight in the spring, the growing season of greenhouse vegetables can be extended to delay their marketing window, making sure that supply is not reduced.
Historically, vegetable prices in June and July reach the lowest level throughout the year. With high volumes of seasonal vegetables hitting the market, the transition among vegetable origins has gradually completed. With the supply of open-field vegetables rapidly increasing, coupled with the high volume of delayed supplies from the previous period, it is expected that the price of vegetables will, in general, remain in a seasonal decline, with some varieties facing the risk of poor sales.
Source: Sannong China