A growing number of Chinese companies are beginning to resume operations. These companies encounter various degrees of difficulties when they restart their business. The main problems are distribution difficulties and a shortage of workers. The potato price has been rising in recent weeks.
Mr. Shan Ti of Gaomi City Green Heaven Food Co., Ltd. recently shared his views on the current conditions of the Chinese potato industry: "There are three main potato production areas in China: Guangdong, Yunnan, and Guangxi. The price of 1-pound potatoes and heavier is around 3,500-4,500 yuan [500-643 USD] per ton. The production season is expected to finish by the end of April. As for the price, the potato price is currently quite high. The price per ton is around 1,500 yuan [215 USD] higher than in previous years. One main reason for this development is that most warehouses only have a small potato reserve this year. The potato reserve is around 30% smaller than in the previous three years. Another reason for the high potato price is the current COVID-19 epidemic. The outbreak of the corona virus severely disrupted product transport in China."
Relevant government departments and potato farmers themselves have all made large investments in the Chinese potato industry in the last few years. The annual production volume therefore continues to expand.
When asked about the unusually low potato reserves this year, Mr. Shan replied, "While the surface area devoted to potato plantation greatly expanded in the period from 2016 until 2018, the potatoes in storage frequently spoiled, which is why so many warehouses only have a small volume in reserve. As for the potato price, the price of potatoes from Guangdong is the highest. The new production season started in February, so the most recent harvest only just entered the market. The price of our potatoes is also quite high. The product quality is excellent and they can endure storage for a long time."
"The potatoes from our farms in Shandong supply the market between May and August. The surface area devoted to potato plantation in Shandong is around 100 thousand hectares. The current potato reserve is quite low. There is only around 5%-10% left in the warehouses. The price of potatoes from storage is around 2,500-4,000 yuan [357-571 USD] per ton. The peak of the harvest season is in June. That is also the period when the price of potatoes is expected to be at its highest. The combined surface area devoted to potato plantation in Inner Mongolia, Gansu, and Shanxi is quite large, but the product quality is not exceptional. The potatoes are planted in April and enter the market in August."
"I am the president of the Potato Association in Gaomi City, Shandong. The association has worked hard since its founding to provide services to the potato industry at every stage of the production process including storage, processing, and retail. We have improved the product quality and efficiency in the Chinese potato industry. The overall surface area devoted to potato plantation in Gaomi is around 6,667 hectares. Our company name is Gaomi City Green Heaven Food Co., Ltd. We have a refrigerated storage capacity of 20 thousand tons and we have an annual export volume of 10 thousand tons. We mainly export our potatoes to Thailand, Vietnam, Malaysia, Singapore, and Dubai. We make large investment in research and development to provide our customers with the highest quality potatoes. In the future we hope to expand our export market to include Europe and the United States. Potential clients with an interest in our potatoes are encouraged to contact us."
For more information:
Mr. Shan Ti
Gaomi City Green Heaven Food Co., Ltd.
Tel.: +86 13905361118