The average price per kg of vegetables in Xinfadi Market showed a significant downward trend this week. Data analyst Liu Tong explained that there are several reasons for this seasonal fluctuation: temperatures rise, which is beneficial for the growth of vegetables in north China. When the coldest part of winter is over, the production of vegetables in greenhouses begins to take off. The increased production volume was followed by decreased prices. A similar development occurs in south China, which further swells the overall supply volume.
In addition, winter vegetables gradually withdraw from the market and spring vegetables take over. Local supply in north China grows, and since the supply chain is short, transport cost is lower. This in turn reduces the average price of vegetables. When temperatures rise even further, and open-field vegetables take over from greenhouse vegetables, the cost price will drop even lower, as will the average price.
Liu Tong stated that the price of vegetables began to fall after Chinese Spring Festival [February 5th, 2019]. However, the seasonal price decrease was delayed because many production areas in China suffered from excessive rainfall and snow. The price decrease is still slower than it was around this time last year.
