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Shandong: Cabbage for 2 cents, no one buying even as food inflation soars

below_freezing

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Feb 26, 2010
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Middlemen and corruption. Will we be the next India?

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When the Castle of the public complaining about the price of vegetables is high, there Who would have thought, six kinds of cabbage farmers busy for 2 cents a pound it away. Cabbage purchase price of 0.02 yuan / kg, cabbage purchase price of 0.2 yuan / kg, celery purchase price of 0.1 yuan / kg, and green onions to sell directly on the mu, 300 mu of land ... ... a reporter recently interviewed found that the wind shift in Jimo Zhen, Roughness vegetable growing areas south towns, many acquisition price is lower than the cost of vegetables, compared to last year are also plummeted. But at the same reporter has learned of the terminals of these dishes are not depressed sales prices, Fushun Road, Qingdao, called the wholesale price of Chinese cabbage 0.25 yuan / kg, cabbage asking price 0.6 yuan / kg, central wholesale vegetable market in the green onions bid of 0.55 yuan / kg, flow to the farmers market and supermarket prices even higher.
 
Isn't this because we sold all that cabbage to South Korea?

No, the article talks about how the price for vegatable buying is at an all time low even as end user food prices are at an all time high.

One farmer even hired people to throw his cabbages away to make room for the next crop because no one was buying, even as cabbage prices soared 10%.

It's all the middlemen and corruption, as the real buyers buy low, sell high, and make 2000% profit.
 
This phenomenon is a natural corollary to opening up of the economy. India did that to food grains and staples and is now see-sawing through price swings.
 
Endusers' income much more than cabbage farmers and comparatively middle do not earn much.
 
I believe Shandong is cabbage country.

Saw a Kylie Kwong show on TLC on Confucius cooking and the field jam packed with lovely green cabbage as far as the eye could see.

Was so tempted that I rushed to the market to buy myself Chinese cabbage (they are different from the local variety).

I aim to do a stir fry with some of it for dinner tonight.
 
This actually kind of familiar and this happens for other crops and in other parts of the world. One day the retail prices go sky high, so every farmers stopped growing other crops and swirched to cabbage growing. At harvest time, the market is saturated, excess amount of perishable cabbage need to be disposed of, so they have to sell cheap or throw them away.

It would be a simple supply and demand situation but the middlemen can control the wholesale supply by refusing to buy from farmer more than market demand, thus creating just adequate supply to the retail outlets and maintain high price in market. Also by refusing to buy more from farmers, the ex-farm prices could be forcely depressed to 2 cents, as cabbage are perishable, unsold harvested stock would be rotted away anyway. This is the typical monopoly of trade by the middlemen.
 

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