Recently, there has been a phenomenon of out of stock in the loquat market, and many fruit farmers have to reluctantly crush the unsalable loquat. This situation has attracted a lot of attention, and people are speculating about the reason behind it. To unravel this mystery, this article will explore the story behind this in detail, as well as the local government's response to it.
There is a problem with the loquat supply chain
Since a few months ago, the supply of loquat has gradually decreased, resulting in a tight inventory in the market. Recently, the phenomenon of loquat out of stock has shocked consumers. After digging deeper, we found several reasons for supply chain problems:
1. Abnormal weather affects fruit growth: This year's weather changes were abnormal, including persistent rainy weather and low temperatures, which brought great difficulties to the growth of loquats. These unfavourable weather conditions have led to a longer growing cycle and a decrease in the quality of the fruit, which has reduced the number of loquat available for picking and sale.
2. Tight inventory due to misalignment between supply and demand: Limited by the geographical and seasonal nature of loquat cultivation, supply in the market has been relatively limited. The mismatch between supply and demand has exacerbated the tight inventory situation. Consumer demand for loquat is increasing, but due to the lack of supply due to the weather mentioned above, the shelves are empty.
Why do fruit farmers step on unsalable loquats?
In fact, it was not the intention of the growers to crush the unsalable loquats. They also made such a decision in desperation in order to be able to reduce their losses. Here's the dilemma they faced:
1. Thin margins can't cover costs: Farmers often face lower prices when selling loquat due to reduced fruit quality due to weather and other reasons. However, their planting costs have not decreased, such as workers' wages and plant management expenses, which have not decreased with the decline in fruit quality. As a result, growers cannot afford to lose money from selling at low prices.
2. High transportation and storage costs: The transportation and storage of loquat is also a very important part of the supply chain. Due to the characteristics of loquat damage and short shelf life, it has to adopt higher-cost transportation and storage methods, such as cold chain transportation and professional cold storage, which further increases the operating costs of fruit farmers.
The local government responded: protect the interests of farmers
The local government also attaches great importance to the phenomenon of loquat out of stock and has taken swift action to protect the interests of farmers. Here's how they responded:
1. Establish a market supervision mechanism: In order to avoid the recurrence of similar problems such as supply and demand misalignment, the local government will strengthen cooperation with fruit farmers and establish a more complete market supervision mechanism. Through market research and information sharing, we can grasp the market demand in a timely manner, reasonably arrange the planting plan of fruit farmers, and improve the stability of supply.
2. Increase support for agricultural science and technology: In order to improve the planting technology and management level of fruit farmers, the local government will increase agricultural science and technology support and provide a series of training and guidance to help fruit farmers cope with adverse factors such as climate change and improve the yield and quality of loquat.