Analysis of the Latest Factors Behind Declining Citrus Planting Profitability
Citrus is a very common fruit in China. All varieties have a certain demand in China, and the citrus planting area is also very large. However, in recent years the current state of citrus planting has not been very ideal. Because the planting profitability of citrus has been continuously declining, many people have given up citrus planting. So what exactly is the reason for the decline in citrus planting profitability? Let's take a look together below!
1. Expansion of planting area
The planting profitability of citrus was quite good a few years ago. Therefore it attracted many people to plant on a large scale. Although citrus has the disease known as huanglongbing (citrus greening disease), it still could not stop people's pace of planting, and in some old planting areas, because tree vigor had weakened, the planting area was also continuously expanded. This caused production to continuously rise, while the market demand for citrus could not keep up with the increase in production. Therefore market competitiveness gradually increased, and for some plantings of slightly inferior quality, their planting profitability would naturally decline somewhat.
2. Rising prices of pesticides and fertilizers
People's requirements for food are now getting higher and higher, so in order to ensure the safety of pesticides and fertilizers, production costs are also getting higher and higher. Therefore their market prices are also getting higher and higher. Now some agrochemical enterprises that do not meet national standards have gradually moved toward bankruptcy. In addition, the prices of raw materials for agrochemical products are also continuously rising. Combined with the decline in citrus market prices, a decline in planting profitability is inevitable.
3. Labor costs
If the planting area is large, then workers certainly must be hired when planting. China's economic development is now getting better and better, and wages are rising very quickly. Therefore when hiring workers, labor cost is also the most important issue affecting planting profitability. With wages rising, citrus prices continuously falling, and part of the labor force consisting of elderly people and women and others with low work efficiency, planting profitability will of course be greatly affected.
4. Other planting costs
The decline in citrus planting profitability is mainly due to the increase in planting costs. In addition to the above two types of planting costs, there are also various planting costs such as land rent and management. Land rental costs are now very high, and the soil is not very good either. Therefore if land is rented to plant citrus, then planting profitability will be greatly affected. In addition, planting management costs such as watering and weeding will all affect the planting profitability of citrus.
5. Improper planting
When planting citrus, mature planting techniques must be mastered. If improper planting leads to phenomena such as pests and diseases and flower and fruit drop in citrus, it will reduce citrus yield and lead to insufficient citrus planting profitability. Moreover, poor management will not only reduce yield but also affect quality, causing great harm to citrus planting. Finally, there must be stable sales channels. If sales channels are unstable, no matter how good your quality is or how high your yield is, planting profitability will not be too high.
The above is a brief introduction to the factors that reduce citrus planting profitability. What mainly affects planting profitability is still the cost issue, so everyone should pay close attention! That is all for today's introduction. This article is for reference only, and we hope it can help everyone!