Why Are Dried Longan So Cheap This Year in Xidiyao? A Look at the Pricing Considerations Behind It

Pricing agricultural products is truly a profound subject. In theory, the selling price should reflect the farmer's production costs and a reasonable income, but for a long time, agricultural product prices have been suppressed. The moment market prices rise slightly, the government imports fruits and vegetables to "stabilize prices." Add to that the higher costs of eco-friendly cultivation, and in recent years the impact of environmental and weather conditions causing yields to fluctuate, and all of this leaves farmers racking their brains when they try to set prices!

Selling dried longan so cheaply involves a lot of inner drama

This year, Xidiyau0027s dried longan is selling very cheaply, roughly 30% cheaper than most dried longan, or even half the price. At first we did not realize this was happening. It was only after we opened orders for the product that we received concerned phone calls, asking why Xidiyau0027s dried longan was selling for only 150 yuan per jin. Never mind that we use pesticide-free cultivation and the traditional method of hand-operated wood-fired drying and sun-drying; even conventionally grown dried longan can be more expensive than this, so we were questioned for undercutting the market price.

When we heard that others were selling theirs so expensively, while we sell at 150 per jin and others sell at 200 or even 300 per jin, the farmersu0027 hearts naturally wavered too. Should we follow suit? The children are still in school and need money, and earning a bit more to help with household expenses would be good.

But this year Xidiyau0027s longan was blessed by heaven, and the yield was not damaged. Last yearu0027s harvest was truly disastrous, so we raised the price by 50 yuan, and at that time we promised that if this yearu0027s yield came back, we would lower the price again. So no matter what, this year we should keep our promise and adjust it back to 150 yuan per jin, because costs have not increased and yields have not declined. At this point, no matter how the market fluctuates, we should sell at the original price. So although we really wanted to follow the market, in the end we stayed loyal to our promise.

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