Transition in Chinese celtuce production areas driving prices down

At present, celtuce in the market mainly comes from Tai'an and Lanling in Shandong. Products from Xianghe, Tianjin, which were still in supply during the mid-season, have by now left the market. In October, prices dropped significantly in stages, from the highest point of 2.7-2.8 yuan/half a kilo, to 1.9-2.2 yuan in the mid-season, then to the most recent 1.5-1.8 yuan. The fall in prices is a result of the transitions among production areas and is the result of a normal price decline.

Recently, prices have begun to stabilize after the fall without continuing to decline like last year. Last year, after the season ended in Northern China, large volumes from Shandong flooded into the market, putting products from Tianjin under pressure. As the market volume from each production area was highly abundant, the wholesale price was very low, only 0.8-1.0 yuan/half a kilo.

At present, however, since products from Shandong became available, there haven’t been large volumes released from production areas. On the one hand, the growth of celtuce was affected by earlier rainfall and flooding. On the other hand, the temperature is now lower, the volume on the market is not large, and the purchase price is already higher than last year. In addition, due to the low prices last year, the planted area in Tianjin has decreased this year, and now a small amount is directly supplied to the local area. The current price is showing a month-on-month decline and a year-on-year increase.

The first volumes from Shandong hit the market in early November. With more products from this province entering the market, the market volume will improve. In addition, supply from Jiangsu and Zhejiang will also arrive on the market one after another. Under normal weather conditions, prices will have some room to fall.

Source: Vegetable Circle


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