Vegetable prices did not fall as fast as expected after Chinese Spring Festival

The Chinese Ministry of Agriculture circulated an announcement that stated vegetable prices remained…

The Chinese Ministry of Agriculture circulated an announcement that stated vegetable prices remained high after Spring Festival [February 5th, 2019] in many production areas throughout China but in particular in the north. In previous years the price of vegetables was "higher than meat" during Spring Festival but rapidly fell as soon as the festival period was over. This year, however, prices only slightly decreased and in some production areas the price even continued to rise.

The main reason for this development is continued rainfall in south China, which slows down vegetable production. In addition, many workers are slow to return from their hometown after Spring Festival, which means that labor cost increased. Some traders raise the vegetable prices as poor weather conditions in south China continue, even for vegetables whose price was not that high to begin with. All these factors lead to higher vegetable prices than expected. However, as the weather began to change and vegetable supply resumed regular operations, market supply increased and the price is expected to come down in a stable fashion.