The price of Chinese watermelons recently showed a slight decline

How will the price of Chinese watermelons develop in 2020?

Watermelons enter the Chinese market in large volumes when the summer begins and the temperatures rise. However, the Chinese watermelon industry is very susceptible to price fluctuations. When the price is high, farmers make a profit, but when the price is low, farmers suffer financial loss. The current price, depending on watermelon varieties, is around 1.5-2 yuan [0.21-0.28 USD] per 0.5 kg. There are two reasons why the price of watermelons slightly declined:

1. Watermelons entered the market in large volumes.

The watermelons from plastic-covered fields generally enter the market in May, but watermelons from open fields only enter the market in July. Many farmers try to earn a profit early in the season and therefore choose to cover their fields. As a result, the market is flooded early in the season and the price declines.

2. The average product quality is not great.

Some of the covered fields did not receive enough sunlight and this poorly affects the watermelons. These watermelons can not compare with others in terms of flavor and size. Their price is therefore lower as well.

How will the watermelon price develop in 2020? The main factor that shapes the watermelon industry in 2020 is the outbreak of Covid-19. Domestic watermelon consumption may decrease by as much as 10%-50% because of the pandemic. The peak of the watermelon season generally takes place in late June and early July. However, the real effect may not be felt until 2021, when the overall surface area devoted to watermelon plantation will decline and domestic consumption will have recovered. Perhaps only then will the price of watermelons improve.

Source: Jinri Toutiao


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