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China: New-season pepper production has decreased in Jinxiang, further boosting prices

The current pepper planting area in Jinxiang has been stable at about 26,000 hectares all year round. The adjustment of the planting area is mainly due to the increase or decrease of farmers’ profits, but overall there is just little change.

First of all, Jinxiang itself is the main garlic-producing area in China, an industry supported by the local county government, and peppers are a value-added product. However, with the gradual development of the industry, the county government and the Bureau of Agriculture are currently giving more support. In addition, in recent years, the method of interplanting garlic and pepper has been profitable, so without major adjustments in the market, it is unlikely that farmers will choose to plant other products.

However, during the period from 2018 to 2020, three consecutive years of heavy rainfall have caused frequent disasters in the production areas, most of which have reduced production, and some have had no production, which seriously affected the income of farmers, causing them to choose to plant other crops. This year, the planting area of ​​pepper in the Jinxiang production area is about 20,000 hectares, a slight decrease from last year, and the reduced area is mainly concentrated in low-lying areas.

In addition, under the situation of reduction in the area of Jinxiang, there will be more than 10 consecutive days of rainy weather in August-September 2021, resulting in a double decline in pepper production and quality and further boosting the price of peppers.

This year, cracked peppers and mildewed peppers are relatively severe, and the output has been reduced by about 30%. On the whole, it is mainly because of the reduced demand on the consumer side.

Firstly, due to the impact of the epidemic, the sales volume of spicy food in China has decreased significantly and the demand of processing companies has decreased significantly.

Secondly, in recent years, China's economy has suffered sustained external shocks from the China-US trade frictions, coupled with the sudden impact of the epidemic, while the economy is struggling to stabilize, and the trend towards an economic slowdown has further intensified. Looking ahead to the next quarter, the reduction in demand in the entire consumer market is also obvious. Chili sales have continued to perform unsatisfactorily since April.


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