Will natural disasters push up the price of Chinese kiwi fruit?

Some kiwi fruit production areas in Xiuwen County, Guizhou, suffered from hail, while kiwi fruit production areas in Sichuan suffered from excessive rain. Some of the fruit fell from the vines. People in the industry are wondering whether the price of kiwi fruit will go up in a similar fashion to the price of apples last year. Will the price soar because the production volume dropped?

The kiwi fruit industry in China rapidly developed in recent years. At the beginning of 2013, the overall surface area devoted to kiwi fruit plantation in China reached 110,000 hectares. That area is now close to 200,000 hectares. The overall surface area expanded by 82% in only 6 years, and this development still continues.

Although the production volume declined in Guizhou and Sichuan, the production volume expanded in Shaanxi and the overall surface area devoted to kiwi fruit plantation continues to grow. The overall production volume of kiwi fruit did not decline as a result of natural disasters, instead the overall volume is growing.

At the same time, while the kiwi fruit industry is growing, the high-end market does not develop at the same speed. This is visible in the price of kiwi fruit, which has been falling since last year. This is particularly obvious for such high-priced kiwi fruit varieties as the Hongyang kiwi fruit. The price of Hongyang kiwi fruit used to be around 10 yuan [1.41 USD] per 0.5 kg in areas around Chengdu. Many farmers expanded their kiwi fruit orchards in response to this price. Last year, however, the price dropped to 6.5 yuan [0.92 USD] per 0.5 kg.

Although the overall production volume grows, the price of Guizhang and Hongyang kiwi fruit varieties may still rise as a result of the natural disasters in Guizhou and Sichuan production areas.

Source: Kiwi Fruit News

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