In November, Beijing saw large quantities of winter vegetables enter the market. Compared to prices in previous years, the prices for Chinese cabbages and radishes have been dropping. The prices for winter vegetables, however, still remains high.
A market analysis shows that there is one main reason for this price increase. The prices for Chinese cabbage were very low in 2008 and 2009, so many farmers suffered losses. This led to a reduction of the production area, and a rise in price. According to a farmer from Wuqing, Tianjin, radishes are not as big as in previous year, because of the cold autumn. This decrease in production will also lead to a rise in price.
Last year's costs for hiring a regular employee were between 50 and 70 yuan per day. This year, that is between 70 and 90 yuan per day. Furthermore, a rise in the prices for gasoline and diesel has also increased the transportation costs. The overall vegetable production area has decreased as well. As winter vegetables are now in their peak season, the price will remain stable in the short term. In the long run, however, prices will most likely be quite high.
Source: Beijing Evening News