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China: Snowfall affects chilli pepper prices
Sannong China has reported that as the weather is getting colder, the greenhouses in Shandong cities Weifang and Linyi will suspend the production of chilli peppers. The "Northern Road for Southern Veggies" is going to be expanded soon and products from such provinces as Guandong, Guanxi and Hainan will become available to the Northern customers. According to the statistics, the prices of Chinese chilli pepper and green pepper showed a steady upward trend in the past month.
This winter began with cold and snowy weather, which accelerated the rise of the pepper prices. Since the snowfall eased off, the prices have slightly decreased. A raise of production costs and a general increase in chilli pepper sales have also affected the prices. Green pepper production requires high-end technologies, which contribute to the rise in prices during winter.
Every winter, the production of chilli pepper switches from Northern to Southern cultivation areas. At this moment, there are still some peppers left in the Northern areas and the Southern areas haven't produced a lot yet, but very soon Southern peppers will make up 80% of total production. However, we should expect that the process of production and transportation from South to North might be affected by further snowfalls.
Publication date: 1/22/2018
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