Peach prices fall, later market unlikely to rise
Peaches can be called the hottest fruit of July. This year, when peaches first hit the market, the retail price for good-quality ones was close to 20 yuan per jin. Recently, peach prices have seen a relatively large decline, with the average wholesale price dropping by nearly 2 yuan per jin, and cases of difficulty selling have appeared. What are the reasons for the relatively large fluctuations in the peach market? And what trend will the market show next?
In June 2019, the new season of peaches got off to a strong start as soon as they hit the market, with not only high wholesale and retail prices, but also concentrated purchasing in many production areas. Compared with 2018, when peaches encountered unsalable stock right at the start of the season, He Tan, an analyst at Zhuochuang Information, believes there is a reason of insufficient supply.
He Tan: In 2018, peaches encountered unsalable stock in quite a few places, selling for only 5 mao per jin. Many peach farmers suffered losses, and some cut down their peach trees and switched to other cash crops. In addition, in the first half of 2019, many peach production areas experienced sustained low temperatures and rainy weather, leading to a reduction in peach output. Because market supply was insufficient, prices remained at a high level.
Because the peach market was strong, quite a few peach farmers made money, and some chose to hold back their stock to sell later, slowing the pace of sales in the hope of earning more profit. However, in the past few days, peach prices have seen a relatively large decline, with not only wholesale and retail prices moving lower, but also situations in some production areas where no one came to buy. What caused this completely different market situation?
He Tan: Overall, the quality of peaches this year has not been good. The high peach prices in the earlier period affected consumer purchasing power, and with quality failing to keep up, consumers were unwilling to pay, resulting in slower sales. This slowdown offset the overall insufficient supply of peaches. In addition, there are now many fruits on the market, such as watermelons, grapes and bananas. With watermelons as the representative, prices have fallen by a considerable margin, which increased the difficulty of selling peaches. Compared with watermelons and bananas, peaches are harder to preserve, and dealers and vendors face higher risks, so there has also been a reduction in purchasing.
Because peaches are not easy to preserve, many growers have a strong urge to sell. As bulk purchasing slowed, more and more were sold in scattered retail sales at markets and roadside stalls, and price competition became fierce, further lowering peach prices.
During interviews, reporters also found that although peach prices have seen a relatively large decline, the price drop for peaches with better appearance has been limited. Especially when they enter supermarkets, peaches with a geographical indication of origin still have the ability to be “sold by the piece.” Therefore, He Tan, an analyst at Zhuochuang Information, suggests that growers continuously strengthen their awareness of quality and actively learn some advanced agricultural techniques to improve product quality.
He Tan: Peach trees have many flower buds and a high fruit-setting rate after flowering. If they are allowed to grow freely, the load on the peach tree will be too great, and the fruit produced will be thin and small. Therefore, fruit thinning in the early stage is very important, and one should take the path of quality rather than quantity. During the growth of peaches, bagging can be used to prevent the peaches from cracking, protect against insects and sunlight, and make the peaches white with a touch of red. At the same time, timely care should be done according to weather conditions, and when there is a lot of rain, attention should be paid to draining water from the peach trees in time. For fruit farmers, this year's quality is already settled, and more attention should be paid next year to improve the quality of their products.
At present, the first batch of early-market peaches has basically been sold out. Usually these peaches are picked when they are 70 percent ripe. They tolerate transportation and are the peaches vendors most like to buy. The peaches currently available are mostly mid-season peaches with a ripeness of more than 80 percent. Such peaches do not store or transport well, and vendors' willingness to buy them has decreased. In addition, there are still many seasonal fruits, and consumers have greater choice. Analyst He Tan believes that it will be difficult for peach prices to rise in the future. For growers, they should give full play to their subjective initiative, use multiple sales channels, and sell as much as they can.