Why did the price of green onions fall by 40% towards the end of the year?

The price of green onions, which were still high two days ago, has dropped significantly as winter storage of vegetables nears its end, according to the Voice of China's Rural China. Recently, the reporter visited many wholesale markets and green onion planting areas and learned that the price of green onion has dropped by 25% compared with the previous few weeks. Compared with the same period last year, it has dropped by more than 40%. Why will the price of green onion plummet so sharply near the end of the year? What will happen next year?

Wanrong County in Shanxi Province is the main producing area of scallion in the north of China. The planting area of scallion in the whole county is more than 200,000 mu. Among them, Wanrong County Wanquan Township produced scallion with white fresh, raw food cooked fried characteristics, has been selling very well. However, this year's situation has appeared the opposite situation, Wanrong County Wanquan Township Jinghuai village planting household Cao Xiaobo told reporters, The village planted more than 3,000 acres of scallion so far more than half have not been sold out:

Cao Xiaobo: Every household here has planted more than ten mu. Except for last year, it has been depressed for many years. There is no way. What can we plant if we don't plant scallion?

Onion farmer Cao Xiaobo told reporters, Some time ago the purchase price of scallion in the ground is about 3 cents per catty, The appearance is particularly good 4 hair more. During this period of time, the news of slow sales of scallion in Wanrong County has been widely publicized by the media. Many enthusiastic dealers have come to buy scallion here. Although the price of scallion has picked up slightly, it still cannot change the status quo of not making money:

Cao Xiaobo: Now the price is more than 55 cents. People all over the country are asking about this. This year's price is still lower than in previous years. The current price is 55 cents. Even if you count 60 cents, the common people have nothing to do. Now you can only say that one mu does not lose money, which is equivalent to working for nothing. That's what it means. Some of them were just enough, while others earned a hundred or two hundred yuan per mu of land.

Subsequently, the reporter learned in Beijing Xinfadi Market that the wholesale price of scallion is now between 0.35 yuan per catty and 0.85 yuan per catty, while the wholesale price of the same period in the past few weeks is still 0.5 yuan to 1.1 yuan per catty, down 25% on a week-on-week basis, compared with 0.8 yuan to 1.25 yuan per catty in the same period last year, down 41.46% year-on-year. Beijing Xinfadi Market News Spokesman Liu Tong:

Liu Tong: If it is the peak season for storage, both purchases and sales are booming, so its price is relatively firm. This winter, including tomorrow spring, the planting area of scallion will be relatively large, so many people worry, because this spring, the price of scallion is relatively high, this year is this winter next spring, the planting area is definitely large, the price and the price trend at the beginning of this spring, there will be a reverse situation.

The reporter's investigation found that the recent centralized listing of scallion, compared with the same period last year, the prices of scallion in various provinces and cities across the country have declined to varying degrees, and many large places have appeared unsalable.

Zhuochuang information analyst He Tan told reporters that the main reason for this year's decline in onion prices is a large increase in supply. Last year, the price of scallion soared all the way. Many growers followed the trend this year and chose to plant scallion, which greatly increased the planting amount of scallion. In addition, this year's harvest was good, resulting in too much scallion on the market, oversupply and natural price drop.

He Tan: The main reason is the increase in planting area this year. Influenced by the high price of scallion last winter and this spring, the planting enthusiasm of scallion growers in 2016 is high, and the planting area in each producing area increases by 20-30%, resulting in a large increase in supply. Another reason is that the quality is low. Influenced by the continuous low price of scallion from June to September, the growers continue to lose money. In the highest period, the average loss per mu exceeds 1,000 yuan. The continuous loss leads to the neglect of management of scallion by growers, resulting in the general low quality of scallion and difficult to sell at high prices.

These two days, as the weather turns cold and the end of the year approaches, the price of scallion has shown signs of slight warming compared with the beginning of November. Still, Zhuochuang analyst He Tan said that this does not change the trend of lower onion prices this year:

He Tan: After November, the price of scallion production area showed a small rebound. As of November 27, the price of scallion in Shandong Anqiu, the main production area, rose to 0.47 yuan/catty, up 0.09 yuan/catty compared with the beginning of November, or 23.68%. Although the price of scallion in November showed a certain rebound, it still fell sharply compared with the same period last year.

Zhuochuang information analyst He Tan predicts that the price of scallion to get rid of the current low may have to wait until next year, for this reason, he suggested that the majority of growers actively prepare:

He Tan: From this winter to next spring, the price of green onion will gradually get rid of the current low price level, mainly because Jiangsu, Zhejiang, Shanghai, Fujian and other green onion production areas listed after New Year's Day in 2017 have reduced production to varying degrees. The price of scallion land in Jiangsu has reached 11000-15000 yuan/mu, so it is more likely that the price of scallion will gradually rise in the later period. For growers, it is still necessary to carefully manage scallion and improve yield. Farmers in Shandong production areas can wait until next spring to sell sprouts and wait for prices to warm up.