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Asia 26/01/2021

China: Chinese potato prices stable

Although China has experienced strong cold snaps this year, potato prices have not wavered. Why are they so stable with almost no fluctuations?

First of all, the supply on the market mainly comes from cold storage warehouses and cellars in Northern China, which have had minimal impact from the cold snaps.

Secondly, the planted area last year was large and the production of Inner Mongolia, Hebei, Gansu, Shandong, and Anhui was high. Especially, Xinjiang has been sending potatoes directly to Guangzhou over recent years.

Moreover, the quality of potatoes from Inner Mongolia improved greatly. This year, many customers chose to ship from Inner Mongolia to Shandong. As the processed products from Inner Mongolia could compete with cold storage potatoes from Shandong, the shipment volume of the latter was lower than in previous years and the volume in storage was high. In addition, trading in various markets was not active with traders mostly purchasing small volumes on-demand, and prices remained stable.

In the short term, as the Spring Festival approaches, market consumption will gradually increase, but considering that potato is a staple, the increase would be limited. In the long run, the pressure on storage potatoes will be high and some traders may be eager to ship from the storage warehouse. After all, the production in Yunnan, Fujian, Guangdong, and Guangxi is also high. At the same time, it also depends on the weather in March and April. If there is a strong cold snap at that time, the market of the new crop in May would be stimulated, and the development in shipments of the storage potatoes will be different.

Source: Chinese Vegetables

Fuente: https://www.freshplaza.com/article/9285436/chinese-potato-prices-stable/


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