BEIJING, May 28 /PRNewswire-Asia/ -- Himfr.com, one of China's leading B2B search platforms with more than 30 B2B industry websites to its name, analyzes vegetable prices and supply.
Recently, the Chinese vegetable market rally has attracted wide attention. Vegetable prices have risen despite this round of extreme weather, which has caused vegetable supply shortages. But China's vegetable prices have continued to rise in recent years, even taking into account CPI and GDP growth. There are many deep-seated reasons for this.
Himfr analyzes that the process of urbanization has caused vegetable supply reduction and consumption increases. In the past, all areas' vegetable bases were situated around the city suburbs. In recent years' great efforts to promote the urbanization process, vegetable plots given way to new city streets and commercial housing, resulting in a substantial vegetable plot reduction. With the advance of the urbanization process, many of the original subsistence vegetable farmers have now become vegetables consumers, which has also lead to a large increase in vegetable consumption.
Himfr also said that agriculture industrialization has increased the transportation costs of vegetables. Originally, a lot of vegetables were consumed at the local level, only a small amount was transported between villages, counties, and provinces. Today, as people's living standards have improved and along with agricultural industrialization and the development of specialized divisions of labor, China's vegetable market has become a large market, with a large-scale circulation pattern, and many vegetables have inter-provincial distribution. Since only a few vegetables are produced locally, and others are transferred from other places, freight and other logistics costs have increased substantially.
Due to commercialization speculation related to grain and other agricultural products, garlic, peppers and other vegetables, dry goods volume is small and easier to control. By limiting shipments, upstream wholesalers can create market tension and raise selling prices. Since the end of last year, as property regulation has increased, the stock market has been weak, leading to a lot of idle funds in the market. Because of this, people have begun to speculate on garlic, pepper and other agricultural products (http://www.frbiz.com/catalog-01000000-1/agriculture.html ). This has led to increasing market volatility, while also causing vegetable prices to soar.
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