Ginger prices have risen recently after a period of stability. With the peak season of overseas markets approaching and stock in China diminishing, export prices are expected to remain high for a long time. Erin Chen, Manager of Juxian Taiyuan Foodstuffs Co., Ltd. talked about the ginger market.

"There are three main reasons for increasing prices. First of all, the Chinese ginger production in the 2019 season was in general lower, and the volume on the market is lower than the level of previous years. Secondly, affected by Covid-19, Chinese consumers have had a large demand in recent months so the market consumes here has been high. Thirdly, the current stock only accounts for about 20% of the total production in 2019. The continuous decrease in the stock has driven prices up. The current export price to the Netherlands is 2,500 US dollars per ton, higher than the same period in previous years ."

When talking about the market development in the next few weeks, Chen said, "From August, the European, Southeast Asian, and Middle Eastern markets will enter the peak sales season. By then, the volume of Chinese ginger will be further reduced, and insufficient supply will lead prices to continue to rise. Prices will only fall after the new crop becomes available (end of November for the Southeast Asian and Middle Eastern markets, and end of December for the European market). However, considering the current planting situation, the price of new crop will be at least 30% higher than the same period of last year."

This year, Chinese ginger gained access to New Zealand. As the first Chinese ginger exporter to ship to New Zealand, Juxian Taiyuan Foodstuffs Co., Ltd. has shipped four containers. "New Zealand has very high requirements for imported ginger. In addition to pesticide residue standards, export products also have to go through fumigation treatment. However, as fumigated products are prone to rot during long-distance transportation, after communicating with customs and inspection and quarantine departments, New Zealand agreed to accept ginger without this treatment. Feedback from local distributors shows that the local market has very high recognition of the quality of Chinese ginger, and the sales speed is very fast. We have also gradually received some new orders."

Juxian Taiyuan Foodstuffs Co., Ltd. has about 1,300 mu of traditional ginger and 800 mu of organic ginger in Guangxi. "As we all know, Shandong is a major ginger-growing province in China. In fact, Guangxi is also an important production area. As plantings in Shandong have become saturated, more and more growers are turning to Guangxi and the planted area here is rapidly increasing at a rate of 30% every year. These growing centers are all developed from unused land and the soil is very good. In addition, the products are generally grown on hills, so they are more natural and have lower pesticide residues. 80% of China’s organic ginger is grown in Guangxi Province."

Source: FreshPlaza.com – 24^th July, 2020

Image by Couleur from Pixabay