Gap in supply led to rise in prices of coconuts from Hainan

Hainan is well-known for its coconuts and enjoying fresh coconuts is a priority of many tourists who visit this island. Recently, coconuts in the markets in Haikou have been 1 to 3 yuan more expensive than usual per count, and the volume marketed in street stalls is a lot lower than before.

The top-grade products are purchased at 8 yuan each and marketed for 10 yuan, and the second-grade products are purchased at 6 to 7 yuan and marketed at 8 to 9 yuan based on size. It is understood that coconut prices in Haikou have risen from the beginning of the month. With rising wholesale prices, retail prices have also risen. So, what are the reasons for this?

The annual production in Hainan is about 300 million counts. Affected by market demand that is two to three times the size of supply, there has been a large gap in supply. With this in mind, prices have risen due to three factors: First, it is the peak period of coconut consumption, especially since the amount of tourists visiting Hainan this year has significantly risen, and the demand has increased.

Secondly, this fruit has a growth cycle, which usually starts after August and September, but due to the dry weather this year, the cycle has moved forward. Moreover, due to the impact of the Covid pandemic, the volume of imported coconuts has fallen and prices have picked up, resulting in a gap in demand and supply for processing companies and an increase in the sourcing of local coconuts.

Due to the shortage in supply, the current wholesale price of young coconuts in markets in Shanghai has also risen to around 110 yuan/carton (9 counts).

Source: Fruit Critic

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