BEIJING, Sept. 8 /PRNewswire-Asia/ -- Frbiz.com, one of China's leading B2B search platforms, analyzes the reasons behind China's booming food prices.
Frbiz reports that food prices in China have continued to rise for sometime, but this increase has had little benefit for farmers.
Himfr understands that those enjoying the biggest benefits are the vegetable vendors. As farmers' lack the market information, some products connected with the market are not fully utilized. When the vegetable prices rise to a high level, many farmers are not in a position to sell them directly to consumers, so they cannot get the benefits brought by the high-street vegetable prices.
Frbiz thinks that the ideal level for vegetable prices should several factors, including demand, quality and safety levels, etc., thus allowing the prices of vegetables to become relatively stable.
Vegetable production areas, from concentrated suburban areas to agricultural regions, tend of offer different production types, which also impacts price. In recent years, the vegetable production process needed a large number of rented farmland, hired workers, fertilizer and seed, etc., so resources also increased in price, and these are pushing vegetable production costs to increase.
In addition, it exposed a series of circulation problems. Fresh agricultural products' green channel is not so smooth, as the market transaction order is bad; organized, professional cooperatives are irregular, so it is difficult for them to play an important role; electronic trading in some places has become an influential tool in dictating prices; and vegetables destroyed or lost in the transportation process often reaches as high as 30%.
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