Replying to [Eurosa]: I quote an example to tell you it is very difficult to answer the question you rasied. Agreed with what Kivi said.
In the rural area , the vegatable costs US$0.03/kg and re-sale
to the cities by some wholesalers at marked prices at US$0.12/kg
and the wholesaler in the cities distribute the prices of US$0.18/kg
then we find in the market like Shanghai and Shenzhen or Gruanzhou
the vetgetables are selling like US$0.35-0.40/kg...
If you look into the differences of those prices, they are very good in margins but do not forget the profits they will have are after the transportation and packing costs , which account very high in China
especially the high petrol oil costs block the wholesalers to buy the
vegetables from far areas as the transportation costs are too high
and eventually leave a lots of vetgetables to dump and truning bad!
All farmers want to sell; but middleman is worry about losing money and prefer not to buy. These kinds of wastages happened very often
last year in China.
From the domestic selling and distributions, we can learn more
and it reflects in the other sector like export, what you can do
with your selling prices? Of course you do not want to export too cheap and ask a better margin if you can; but the export trades are greatly related to the market prices. That's why Kivi suggested you
the way mentioned.
buy
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