Noon International: Food Trading Import Export

China crop update

China is facing one of the worst seasons in recent years. Abnormal weather is raising havoc for farmers and for the frozen vegetable industry. It is the coldest weather in the past 50 years with many provinces facing snow and freezing conditions. 18 provinces in China have been impacted by the weather this year.

Individual crop conditions listed below:

• Leaf Vegetables – prices have doubled compared to previous years.
• Root Vegetables/Beans – Strong market demand due to lack of leaf vegetables. Prices unworkable for frozen factories. Japan cannot afford high raw material cost for their fresh market.
• Celery – Normal price RMB750 – 800 per metric ton. Today RMB1250/mt
• Green Pepper – Normal price RMB2000/mt. Today RMB2700 – 2900.
• Broccoli – Normal price RMB1400 – 1600/mt. Today RMB2500 – 2600/mt.
• Cauliflower – Normal price RMB400 – 500/mt. Today RMB1200 – 1600/mt.
• PeaPods – Normal RMB3000 – 3500/mt. Today RMB8000 – 9000/mt.
• Sugar Snap Peas – Normal RMB3500 – 3800/mt. Today over RMB6000/mt.
• Water Chestnuts (peeled and delivered to factory) Normal RMB2500 – 2900/mt. Today RMB3300 – 3900. We are predicting that the price will rise even further to the RMB4500 – 5000/mt range because total harvest quantity is 35% of last year, strond demand in local market.

Other factors impacting price:

• Pesticide cost 20 – 30% higher than last year.
• Fertilizer cost is 85 – 100% higher than before because of high oil cost.
• Field Workers – early 2007 paid RMB15/8hours (no need to supply food and transportation. Now after new labor regulation and manpower situation in China RMB30/6.5 hours with food and transportation.

Technorati Tags: Noon International, vegetables, weather

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