The price of Chinese Xiahei grapes recently declined. The main production areas of this grape variety are in Shaanxi, Yunnan, Hebei, and Zhejiang. However, this early in the season most production areas are not yet producing grapes, only Yunnan is currently supplying the market.
There are several reasons for the price drop:
1. The temperature is rising
Grapes in Yunnan grow riper as the temperature continues to rise. Honghe was the first county in Yunnan to supply the market with Xiahei grapes this year, but now that Kunming and Chuxiong have joined, the overall supply is rapidly growing. The purchase price in vineyards is falling and so is the market price.
2. Cost price impact
The first grapes of the season generally come from greenhouse vineyards. The cost price of resources and labor is relatively high, which means that the purchase price is high. Plantation has now shifted to covered vineyards where the cost price is much lower. The purchase price consequently dropped and so did the retail price.
3. Consequences of the COVID-19 pandemic
Although most industries have returned to previous levels of production, the consumer market is slower to follow. The trade volume in the Chinese fruit market, for example, is much lower than usual. Although the price of Xiahei grapes is still higher than the price of most other fruits, the trade volume is still quite small. When the supply volume grows, the price is likely to come down. The majority of Xiahei grape vineyards will begin to supply the market after May 1st, and we expect the price to fall in response to growing supply.
Source: ifreshfair.cn
