What are the factors that reduce the profitability of citrus cultivation?
Citrus is a very common fruit in China. Various varieties are in demand to some extent across the country, and the citrus planting area is also very large. However, in recent years the current state of citrus cultivation has not been very ideal. Because the profitability of citrus cultivation has been continuously declining, many people have given up growing citrus. So what exactly is causing the decline in citrus cultivation profitability? Let's take a look together below!
1. Expansion of planting area
The profitability of citrus cultivation was quite good a few years ago. This 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. Moreover, in some old planting areas, as tree vigor weakened, the planting area continued to expand. This led to continuously rising output, while market demand for citrus could not keep up with the increase in production. As a result, market competition gradually intensified, and the profitability of some slightly lower-quality plantings naturally declined.
2. Rising prices of pesticides and fertilizers
People today have increasingly high demands for food, so in order to ensure the safety of pesticides and fertilizers, production costs have become higher and higher. Therefore, their market prices have also risen higher and higher. Now some agrochemical enterprises that do not meet national standards have gradually gone bankrupt. In addition, the prices of raw materials for agrochemical products are also constantly rising. Combined with the decline in citrus market prices, a drop in cultivation profitability is inevitable.
3. Labor costs
If the planting area is large, then workers must certainly be hired during planting. Now China's economy is developing better and better, and wages are rising very quickly. Therefore, when hiring workers, labor cost is also the most important issue affecting cultivation profitability. Wages are rising, citrus prices keep falling, and part of the labor force consists of elderly people, women and others with low work efficiency, so cultivation profitability will of course be greatly affected.
4. Other cultivation costs
The decline in citrus cultivation profitability is mainly due to the increase in cultivation costs. In addition to the two types of cultivation costs above, there are also various cultivation costs such as land rent and management. Land rent costs are now very high, and the soil is not necessarily very good. Therefore, if land is rented for citrus cultivation, cultivation profitability will be greatly affected. In addition, cultivation management expenses such as watering and weeding will all affect the profitability of citrus cultivation.
5. Improper cultivation
When growing citrus, one must master mature cultivation techniques. If improper cultivation leads to phenomena such as pests and diseases or flower and fruit drop in citrus, it will reduce citrus yield and lead to insufficient cultivation profitability. Moreover, poor management will not only reduce yield but also affect quality, causing great harm to citrus cultivation. Finally, there must be stable sales channels. If sales channels are unstable, then no matter how good your quality is or how high your yield is, cultivation profitability will not be very high.
The above is a brief introduction to the factors that reduce the profitability of citrus cultivation. What mainly affects cultivation 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 I hope it can help everyone!