Vegetable prices throughout China have continued to fall to previous levels since March. The market has not changed since last week when the Spring Festival ended, at which time supply exceeded demand. The fall in prices is gradually growing, given that people have returned to work after the Spring Festival concluded with the Lantern Festival (16th of February, 2018). The pace of the price drop is also growing. Experts estimate that this development will continue for a while before it stabilizes.
Judging from the market conditions in Zhejiang, prices of conventional vegetables fell relatively hard, but the prices of seasonal, fresh vegetables like Chinese mahogany leaves are still relatively high. The main reason for this difference is that seasonal, fresh vegetables are scarce and therefore more expensive. However, as they enter the market, their price gradually falls. The market conditions in Shandong are not favorable for vegetable growers. The falling prices there are the result of a shrinking market. The supply volume is still there, but demand is constantly falling. Under these conditions it becomes obvious that farmers are hoarding vegetables in the hope that prices will recover.
In the northeast the prices are low as before, but products are moving. While the supply volume is large, the actual volume that is sold is also large. This situation is much better than in Shandong. As the off-season vegetables are gradually leaving the market, and seasonal vegetables increase, the market must move towards stability in the near future.
Source: agri.cn