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China: Hot peppers don't live up to expectations

Zoom in font  Zoom out font Published: 2017-05-04  Views: 3
Core Tip: Volumes of small peppers from their main production location, Henan province, are limited. Buyers are not very enthusiastic about purchasing the peppers, because it's hard to get value out of them.
Volumes of small peppers from their main production location, Henan province, are limited. Buyers are not very enthusiastic about purchasing the peppers, because it's hard to get value out of them. The market price is stable but the current market situation is not very promising.

The surplus of cherries and peppers in Linfen city in Shanxi province is big and transaction rates have stagnated. Storehouses in other provinces are only rounding off, so their market situation will be steadier. The majority of peppers from the production locations have entered the phase in which they are treated outside of the storehouses, where transactions are dissapointing and the market situation is rather stable and where, in reality, quality decides the price.

Taking into account that we are now in the transitional period in which the supply of goods is being crossed from inside storehouses to outside the storehouses, the busy season has started in several regions, which had a certain impact on the market supply and the time-to-market. Buyers from wholesale markets obviously purchase less of the peppers and processing plants only buy them according to demand. The market in the production locations currently demonstrates a trend in which supply exceeds actual demand, so the market situation is feeble and the price is low. Only a small amount of peppers from cold storehouses have been brought on the market, because prices are dissapointing.
 
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