Onion Price Soared in 2012

By CnAgri2012-12-19 10:44:59 Print The growing area of onion in 2011 in China has increased and the export volume declined, leading to the lowest onion price in three years. In 2012, the prices of onion have continued to increase. By November, the average wholesale prices was 1.72yuan/kg, up by 15.91% from last year which as 1.48yuan/kg.
 
The reason causes the prices increase:
1 Output reduction: Affected by the low onion prices in 2011, many growers changed to grow other crops due to the profit loss. It is hoped that the growing area will be reduced by 30% to 40%. The major onion growing area, Gansu province, the growing area of which is large and longer market presence, and the growing area has reduced significantly.
 
2 The cost of labor and fertilizer has increased, pushing up the market price.
 
Insufficient supply caused price increase. The prices of onion hope to be stable when the new onion enters the market in February 2013, but the price is still in a higher level. It is predicated that the growing area will increase in 2013 due to price increase. If the relevant government could predict the trend of market supply and demand before the growing season, the prices next year won’t fall back to the level of 2011.
 
 

From “China Fruit &Vegetable Market Monthly Report”