Vegetable production areas in north China recently experienced heavy rainfall. The prices of vegetables from open fields in Shandong and Hebei, as well as vegetables from greenhouses in Liaoning and Inner Mongolia, continue to rise. The price began to come down again once the excessive rainfall stopped. Although the price is slightly lower than last week, around this time last year the seasonal price decline had already set in, so in comparison with last year the price is still much higher.
The vegetable price has been at a high point since the summer. There are two main reasons for this situation:
The outbreak of Covid-19 had a disastrous impact on the Chinese market. The overall surface area devoted to vegetable plantation declined. Some farmers had difficulty selling their vegetables last year when the vegetable price reached historical low points in the period between August and October. This also affected their eagerness to plant vegetables this year. Last year the price reached a historical low and this year the price reached a historical high. That is why the difference is huge.
The vegetable price slowly climbed in October last year and then the seasonal price increase further pushed the price up. This year, however, the price has been high since summer. The current price is already higher than around the same time in previous years. Furthermore, autumn vegetable supply is better than in the summer, which means that there is not much room for the price to rise even further. That is why the seasonal price increase was delayed.
The main supply of vegetables for Beijing Xinfadi Market comes from production areas north of the Yellow River, at least for now. Some of the vegetables come from open fields and others from greenhouses. The supply volume is stable and the price fluctuations are small. As the market supply volume grows, the price will come down. While some vegetable prices go up or come down, most of them remain stable. There does not seem to be room for a seasonal price increase.
Source: Beijing Xinfadi Market