Retailers make small profits, but the turnover is rapid

Wholesale price of Chinese vegetables is going up

The prices of Chinese vegetables have been higher than usual in the last few weeks. The vegetables are handed over from wholesale dealers in major cities to wholesale dealers in second- and third-tier cities before they reach retailers, and every time the vegetables change hands, the price goes up. In addition, the seasonal price rise, weather conditions, and the pandemic all add to the cost price of vegetables. In some cases the retail price of vegetables increased by more than 50%.

A spokesperson for the chamber of commerce explained that there are four main reasons for the high vegetable prices:

1. Vegetable production areas shifting between seasons. The supply of summer vegetables is already over, but the supply volumes of autumn and winter vegetables is still rather small.

2. Moreover, temperatures dropped quickly when autumn began, and rainfall is excessive. Major vegetable production areas in Shandong and Henan slowed down vegetable production due to unfavorable weather conditions. In some areas the fields flooded, which naturally reduced the production volume. Spinach and other leaf vegetables suffered the most, and their prices soared. Vegetable prices in Shouguang county, Shandong, are considered a barometer for national vegetable prices, and their price index has been on the rise for six weeks already.

3. ln addition, the rising price of diesel also increased the cost price of distribution.

4. The pandemic has reduced the volume of cross-border trade and therefore reduced the supply volume of vegetables, which further pushes the price up.

Source: Chinese Vegetables

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