Qin Shaofen manages 500 lychee trees on the outskirts of Guangzhou, Guangdong province. This season, the orchard has produced approximately 2,500 kilograms of lychees expected to ripen shortly. Initially, wholesalers expressed interest, offering 24 yuan (US$3.30) per kilogram. However, prices swiftly fell as lychees flooded the market.
Qin reported, "We've sold only half of the harvest so far," noting diminished income. China anticipates a lychee crop of 3.65 million tons, a substantial increase over the previous year. Despite this, farmers face difficulties achieving profitability due to oversupply, high logistical costs, and fragile produce, leading to decreased retail prices. Feizixiao lychees now retail at significantly reduced prices, with other varieties experiencing similar declines.
For many growers, prices barely cover the harvesting expenses, highlighting the vulnerability of small-scale farmers who lack reliable market information and struggle to respond to demand shifts. Historically, lychees were a luxury in China, prominently featured in ancient poems and lore. Once a regional specialty, the fruit secured a national presence through advanced logistics. Still, market volatility remains prevalent.
At Qin's orchard, fewer buyers visit, offering reduced prices compared to last year. Qin noted, "We've given up on picking," as harvesting costs outweigh potential profit. Efficient logistics and new sales channels have yet to offset costs for many growers like Zheng Yi, who uses online platforms to market his father's lychees. Even with heightened interest sparked by cultural media, oversupply continues to strain the market.
Industry experts observe that lychee pricing reflects broader agricultural cycles in China, tied to long production timelines and market response delays. Commodities like blueberries and pork face similar challenges. The predominance of small farms magnifies these issues, especially in fruit production. While the government provides subsidies for staple crops, fruit farmers find limited protection.
Agricultural insurance and monitoring systems focus primarily on staples, leaving perishable crops like lychees at risk. Improved mechanisms and regulatory measures are advocated to mitigate harmful cycles. Establishing cooperatives and utilizing technology for accurate forecasting are suggested solutions to enhance market stability. In Guangdong, rural cooperatives are forming contracts with farmers to ensure a baseline income.
Source: Sixth Tone
