Summary of Key Points
After a large number of watermelons were released onto the market in some areas of Henan, prices plummeted to just over ten cents per pound, leaving melon farmers in a difficult situation with regard to selling their produce. While charitable organizations, tourist attractions, and individuals have helped alleviate the immediate pressure through purchasing or supporting agricultural activities, these efforts are only temporary solutions that do not address the root issue. The article highlights the core problem lies in the structural flaws within the agricultural supply chain: although production capacity has increased, aspects such as marketing organization, distribution efficiency, and the allocation of trading power have not kept up, resulting in a situation where there is a surplus of melons but not a corresponding increase in income for farmers. The gap between low prices at the farm and high prices in cities essentially reflects a lack of organizational capability. Agriculture needs to shift from a focus on simply producing enough to one that ensures farmers can earn a stable income, thereby avoiding anxiety over bountiful harvests.
Detailed Analysis
1. Temporary Assistance Cannot Solve Yearly Challenges in Selling Melons
Activities such as free melon distributions by tourist attractions, bulk purchases by charitable organizations, and individual purchases by citizens can indeed help farmers sell their melons quickly, but they only provide temporary relief. The reason is that watermelons are released onto the market in a concentrated period each year; tourist attractions cannot purchase all of them, and visitors cannot consume them for free every day. The traffic generated from these efforts does not prevent farmers from facing similar difficulties in the following years. The fundamental issue lies in the lack of a marketing system that connects production with sales in advance.
2. Watermelons at Ten Cents per Pound Reveal the Value Gap Between Surplus and Profitability
Many people assume that a “bumper harvest” means high production, but for farmers, it also means being able to make a profit. The current problem is that although there are many melons grown (a surplus), farmers cannot earn a decent income. The issue lies in the inability to convert these melons into money: for instance, they must be sold immediately once ripe, and when there is an oversupply during the peak market period, prices drop below the cost of harvesting and transportation. There is also a lack of quality grading (good and bad melons are sold together), which prevents higher prices. Additionally, there is no processing of surplus melons (such as making juice or canned products). These shortcomings prevent the harvest from translating into actual income.
3. Farmers' Weakness Lies Not in Their Ability to Grow, but in Their Lack of Trading Power
The notion that farmers are “unaware of the market” is outdated; many modern farmers grow high-quality, high-yield melons with stable sugar content. However, being able to grow them does not equate to being able to sell them effectively:
- Lack of inventory control: Ripe melons must be sold quickly, as they will rot if left unattended.
- Lack of pricing power: When there are few buyers, farmers have no say in setting prices and are often forced to accept low rates.
- Lack of distribution channels: The price difference between the farm and the city (several dollars per pound vs. just over ten cents) goes entirely to intermediaries.
- Lack of risk management: Farmers bear the risks of bad weather, concentrated market supply, and unsold products.
These issues are not due to individual incompetence but reflect the structural disadvantages faced by small-scale farmers in a large market—similar to a person negotiating with a large company without much influence.
4. The Price Gap Is Not Due to “Unfair Middlemen”
The price difference between the farm and the city is not simply because intermediaries profit excessively. Each step in the distribution process (harvesting, transportation, wholesale, sorting, retail) incurs costs and involves losses (damage during transport). While intermediaries do make a profit, the key factor is who has the organizational capability to manage these steps effectively. Farmers lack the resources to organize vehicles, connect with city markets, or establish quality standards, resulting in them receiving the lowest prices. The high prices in cities do not benefit farmers.
5. Agriculture Needs to Shift from a Production System to an Income System
In the past, our focus on agriculture was on whether enough food could be produced; now we need to consider whether it can be sold at a profit and how much farmers can earn. This means shifting from a system that focuses on quantity (how much is grown and harvested) to one that emphasizes income (how much is sold, how much profit is made, and who bears the risks). To prevent farmers from worrying about bountiful harvests, we need to establish a stable supply chain:
- Advance contract agreements with city markets.
- Establish quality grading standards for higher prices.
- Develop processing industries to handle surplus melons.
- Involve farmers in pricing and distribution processes.
Only by doing so can we ensure that harvests truly bring prosperity rather than stress for farmers.
Conclusion
Farmers should not rely on short-term market fluctuations. For a watermelon to be successful, it must not only be grown but also part of a stable system that allows farmers to earn a profit. This is the core issue that modern agriculture needs to address.