Ty­phoon hits East China’s veg­etable export hub, may push up global prices

Global Times US Edition - - BIZUPDATE - By Song Lin

The city of Shouguang in East China’s Shan­dong Prov­ince has been left in ru­ins by tor­ren­tial rain bought by Ty­phoon Lekima. Since it is an im­por­tant veg­etable pro­duc­ing and ex­port­ing hub in China, ex­perts warned that the dis­as­ter may push up veg­etable prices in the global mar­ket.

A lo­cal res­i­dent sent the Global Times a video on Sun­day show­ing that some of the veg­etable green­houses of her fam­ily had been sub­merged in wa­ter. They have aban­doned the green­houses and evac­u­ated to a safe area.

One veg­etable green­house costs 300,000 ($42,500) to 400,000 yuan, and many of them were fi­nanced with loans, ac­cord­ing to the res­i­dent.

Last year, Shouguang was hit by the most se­vere flood in over 40 years and many of the green­houses were built on govern­ment loans af­ter the flood.

Hong Tao, an ex­pert on mar­ket reg­u­la­tion of the Min­istry of Com­merce, told the Global Times that the dis­as­ter in Shouguang may drive up world veg­etable prices.

“Coun­tries in­clud­ing Rus­sia, Ja­pan and South Ko­rea are ma­jor im­porters of veg­eta­bles from Shouguang,” Hong said, adding that China has long been a key veg­etable ex­porter in the world with more than $7 bil­lion in ex­ports in 2018.

Cuil­ing West county in Shouguang has 1,105 mu (74 hectares) of veg­etable green­houses and ex­ports more than 15,000 tons of veg­eta­bles to Rus­sia val­ued at 100 mil­lion yuan ev­ery year, jiemian.com re­ported.

Wang Pan, a mer­chan­dis­ing man­ager of a Qing­dao-based for­eign trade cor­po­ra­tion called Lian­qiao Group, told the Global Times on Sun­day that showed some of their sup­pli­ers’ plants in the prov­ince have been sub­merged and pro­duc­tion has been sus­pended.

She did not dis­close how much of a loss the com­pany faces.

Ac­cord­ing to a re­port from the Xin­hua News Agency on Sun­day, di­rect eco­nomic losses caused by the ty­phoon have reached 15.75 bil­lion yuan in East China’s Zhe­jiang Prov­ince.

An up­date by the Peo­ple’s Daily showed that at least 32 peo­ple were dead, 16 re­mained miss­ing, and more than 5 mil­lion peo­ple had been af­fected as of Sun­day af­ter­noon in Zhe­jiang Prov­ince af­ter Ty­phoon Lekima made land­fall in the area.

Lekima was mov­ing north at a speed of 25 to 30 kilo­me­ters per hour, and it was fore­cast to hit the coast of Shan­dong Prov­ince by night­fall on Sun­day, the Na­tional Me­te­o­ro­log­i­cal Cen­ter warned.

Fore­cast­ers have is­sued 55 rain­storm red alerts in Shan­dong re­lated to the ty­phoon.

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