Grassroots costs

Apple farmer Lu Guoqi waits for customers with his wife. Lu is very happy this year because of soaring price of the fruit, although he complained that the cost of producing them has risen too. [China Daily]

Farmers say they are struggling with rising costs even before their vegetables come out of the ground.

"Fertilizers, pesticides, diesel fuel, labor cost; these things have all become more expensive," complained Lu Guoqi as he sold Qixia apples from his tricycle.

Counting his expenses on his fingers, he continued: "I needed to pay 140 yuan for a bag of fertilizer, which was about 110 yuan last year. Also, the price of pesticide and diesel has increased 33 percent and 10 percent (respectively)."

Even the cost of hiring fruit pickers and packers has gone up. Part-time workers earned 80 yuan in 2009, yet salaries rose to 120 yuan this year.

"That's 120 yuan and you have to take care of their lunches," said Mou Fengshan, a 64-year-old orchard farmer in Beiyanzikou village, Qixia.

To save some money, Mou got his son and daughter to help harvest his apples and also reduced the amount of fertilizers and pesticides he used.

"I water the trees myself instead of using a machine, so I can save on diesel," said Mi Baosheng, 56. He discovered it is not only wholesalers who store and wait for peak demand. "The price of diesel dropped for a while and the gasoline station told me they were out. When the price is up again, they started selling it again."

Even though the central government has made farmers exempt from agricultural tax, as well as the tax on special farm produce, Mi said he spends far more on fertilizers and pesticides.

"Farmers' lives are easier now but I don't expect to make a huge profit and improve my living standards dramatically from the (apple) price hike," he said, scrubbing dirt from his worn pants.

After witnessing the rush this year, Mi said he has saved 10,000 kilograms of apples in cold storage and is hoping the price will rise even more.

"Farmers who saved last year have made a lot of money," he added.

(China Daily November 4, 2010)