Analysis of sudden price increase for Chinese fruit
As the seasonal market is changing, fresh fruit enters the market in large volumes. A quick look at this year’s prices in comparison with last year shows that fruit prices greatly increased this year. One of the reasons for this development is quite obvious, the overall production volume decreased because of extreme weather conditions this year. However, looking at broader price developments shows that this price increase started much earlier than this year. The price of domestic fruit has been on the rise for several years now, and this is likely to be the prevailing trend in the future as well.
Well then, what are the reasons for this development?
Shrinking gap in product quality and product variety between domestic fruit and imported fruit
Imported fruit is not nearly as rare as it was on the market 10 years ago. As China opened the doors wide, more and more fruit importers have entered the Chinese market. The annual import volume of fruit continues to increase. In some situations the market even turned upside down, and imported fruit became a common sight. Under these circumstances, some consumers, suppliers, and plantation owners began to change their perception of domestic fruit:
First, various production areas in China have been importing fruit varieties from abroad for many years now, and this is particularly true for south China. Plantation owners experimented and adjusted until these fruit varieties performed well in Chinese production areas, and the fruit now produced in these areas is virtually indistinguishable from imported fruit, whether it is in terms of flavor or other characteristics.
Second, China continues to upgrade and innovate plantation technology and equipment in the agricultural industry. Plantation owners often apply glasshouse and greenhouse technology, and experiment with growing environments developed in agricultural production areas abroad. This also guarantees increased product quality for fruit produced in China.
Third, steady economic growth in China means that overall living standards have increased in recent years. Consumers enjoy higher average incomes and are able to spend more on food products. Consumers in China have begun to change their consumption pattern from quantity to quality. Farmers and fruit traders only have to improve the product quality of their fruit, and consumers are eager to pay extra. The proportion of top-quality fruit is still relatively small in the current fruit market. Increased consumer demand for top-quality fruit will eventually increase market prices.
Publication date : 11/2/2018
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