The Chinese fruit and vegetable prices began to soar in March. In the period between April and July the prices increased by an average of 12% in comparison with previous years. In September, however, fruit and vegetables entered the market in large volumes and the price began to drop.
The analyst Tang Ke, bureau chief of the Economic Information Bureau, part of the Ministry of Agriculture and Rural Affairs, explained the situation as follows:
Reasons for the price increase
First, weather conditions in the first half of this year were not great. This delayed the market supply of vegetables in the spring. Market demand was greater than supply and so the price began to rise.
Second, the cost price increased and the retail price subsequently followed.
Reasons for the prices declining
First, the weather improved in the second half of this year. Seasonal vegetables entered the market in large volumes.
Second, production areas expanded the surface area devoted to vegetable plantation in spring and autumn. The supply of autumn vegetables was abundant and the price therefore began to fall.
The price of fruit followed the same path from high to low
The production volume of several kinds of fruit dropped as a result of cold currents in spring. Market supply was insufficient and the price began to rise. When autumn fruits such as grapes, apples, and pears entered the market in large volumes, the price then began to come down again. The current price of fruit is within regular range. Tang Ke predicts that the price will continue to fall when late-season fruits such as red Fuji apples and oranges enter the market.
Source: Jinri Toutiao