China’s Crimson grape market struggles with plummeting prices

Published Dec 19, 2024

Tridge summary

Xichang, known for its extensive grape vinefields, has seen a decrease in Crimson grape prices, leading to market instability. The drop in prices is attributed to overly optimistic market expectations following last year's price surge, oversupply due to hoarding, and adverse weather affecting fruit quality. These factors have resulted in a significant decrease in market competitiveness and a redirection of grapes to the domestic market, further exacerbating the supply/demand imbalance. The situation is worsened by record overproduction and storage capacity issues, potentially leading to quality deterioration and increased losses for growers. The article highlights the challenges faced by industry stakeholders due to these market dynamics.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

As one of the core production areas for Crimson grapes, the city of Xichang in Sichuan province has experienced steady growth in terms of cultivation scale and output in recent years. However, the market for Crimson grapes has undergone dramatic changes this year with prices stagnating at low levels, leaving many industry stakeholders in a challenging position. Xichang is renowned for its extensive vineyards covering over 10,000 hectares, with an annual grape output exceeding 250,000 metric tons and a total production value exceeding 6 billion Chinese yuan ($822 million). This positions it among the top grape-producing regions in China. The primary varieties cultivated include late-season Crimson, Kyoho and Shine Muscat, with Crimson grapes accounting for a substantial share of the cultivation area and output. In recent years, Crimson grapes have gained widespread market popularity and secured a premium price position on account of their vibrant color and sweet flavor. Moreover, ...

Source: Producereport