During the last few days, apples have hit a record low. Last Friday, the main contract set a new low of 7,784 yuan per ton. In 2017, the total output of apples in Shandong dropped by about 10% compare to last year. Among the causes was a crop reduction in Yantai by 20-25%. On the one hand, cultivating areas were affected by the weather. On the other hand, the apple trees in Yantai are now in the middle of an alternation cycle. The old trees are being changed for the new ones, which are not able to produce a lot of fruits yet, causing the output to decline. However, production in the major western producing regions such as Shaanxi increased greatly. As a result, the output of apples in China in 2017 remained high.
The local enterprises generally note that the market situation this year is worse than before. Market demand was sluggish, buyers ordered lower amounts of apples and the sales were slow. A lot of cold warehouses became uncooperative, since they still have apples left from the last year. Analysts believe that the prices of apples are unlikely to change soon. Even the upcoming Spring Festival won't be able to save the situation.
Source: cngold.org