How will farmers recover if Chinese market prices keep falling?

Farmers have been complaining in the second half of this year that there is simply no way to make money in the agricultural industry. Apart from the fast-rising price of pork, the prices of fruit and vegetables are all falling. Pomelos entered the market before they were ripe. When consumers heard this news, they didn't buy pomelos no matter how low the price dropped.

The apple market suffers from counterfeit brands, which makes consumers wary. The price of apples dropped to its lowest point this year. Farmers who plant vegetables for a living are having an even harder time. They spent half a year planting cauliflower or cabbage, and now they can hardly sell them. The prices dropped from 1.7 yuan [0.24 USD] to 0.17 yuan [0.02 USD].

What are the main reasons for this situation? First, the risks involved in cauliflower and cabbage plantations are high. Furthermore, there are many cauliflower and cabbage farmers and the overall surface area devoted to these products is huge. The large supply volume offers buyers many options. Scarce goods are expensive, but the large supply of cauliflowers and cabbages push the price down.

Second, the price of top-quality product varieties began to fall last year and the price of lower-quality product varieties had to follow. Many cauliflower and cabbage farmers are small-scale farmers and the quality of their brands is not as good as the brands from larger cooperations.

There are numerous reasons why the price of cauliflowers dropped and the cauliflowers became unmarketable: the production volume doubled and the market is saturated, buyers put pressure on the price, product quality dropped, etc. Farmers will have a difficult time to recover.

Source: Jinri Toutiao


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