China: Dry spell affects veg production

At the time of year when things should be good, the dry weather in south west China is causing havoc with the vegetable production. According to Mr Liu from TOMCO Produce Group Co., based in Jiaxing Zhejiang, 70% of snow and sugar snap peas, asparagus, lettuce and flowers. He goes on to say that the current sugar snap peas price directly from grower has reached a maximum of USD2/kg, this will lead to the final cost USD3/kg EXW.

TOMCO should have around 400 tons of snow peas and sugar snap peas, but only have around 100 tons. There has been of no effective rain since September 2009.
Asparagus is in a similar situation, crop collecting price is reaching USD3/kg, this means that to export will mean a loss, local sales in the domestic market will make a sense.
Tomco is however, still struggling to ship to contracted customers and markets. The recent progress we made by getting the contract with Coles Supermarket in Australia for 12 months will help them to have a better crop arrangement.
Mr Liu expects some rain the area at the start of May and then the situation will change.

The ginger prices are also very high, however this has nothing to do with the weather, its because of the 2009 crop was only around 60-70% of the previous years. The higher price level will not change till end of this year.
Contact:
Younger Q.C.Liu
TOMCO Produce Group Co., Limited.
Jiaxing TOM CO.,Ltd.
412 Mellow Mall,
Jiaxing Zhejiang 314001
China
Tel.:(86573)82098998
fax:(86573)83591018
Mob.(86)13757360172
Skype=youngerlak,
MSN: younger.liu@tomco.cn
website http://www.tomco.cn