The apple production volume decreased in 2018 as a result of extreme weather conditions. In addition, people have been speculating. The purchase price of apples showed significant increase. This is not just because cold storage adds to the cost price, but also because the volume in storage is relatively small. Market prospects are not great, however, as apple sales suffer from the low prices of other fruits. Apple supply has slowed down and many traders are apprehensive. They suspect that the price of apples will fall after Spring Festival [February 5th, 2019] is over.
Not only did the production volume decline, but the apple farmers are also less wiling to enter apples into storage. Around 1.4 million tons of apples entered storage in Shaanxi in the autumn of 2018, which is 50.7% less than in the autumn of 2017.
Zhuochuang Information analysis
Production areas in Shandong showed a decline in apple production volume in 2018 as a result of natural disaster. The purchase price in production areas rose and fruit farmers preferred to sell directly. The volume of apples in cold storage mainly came from visiting traders, not from apple farmers.
Chinese Spring Festival arrives 10 days earlier in 2019 than it did in 2018. Traders in wholesale markets have prepared their supply from production areas in advance. According to Yang Jun, data analyst at Zhuochuang Information, around 12.5% of last year's stock remains in cold storage. The price of apples in Shandong is expected to remain stable in the period leading up to Spring Festival, but if the sales volume does not improve during Spring Festival, then the price is likely to fall when the festival is over.
Source: snzg.net