In the past two months, the price of Chinese ginger has been rising rapidly and running at a high level. Fujian Fresh Exchange Trading Co., Ltd. is mainly engaged in the domestic sales and import and export of ginger.
Mr. Ye Qiaowei, from the company, introduced the current situation of the ginger market to FreshPlaza: "This year's ginger production has decreased, and farmers and storage companies are reluctant to sell. The price of ginger has been on the rise since it was harvested in October last year, and the price has doubled at present. "
The reason for the reduction in production, according to Ye, was that the price of ginger was low due to the overcapacity of ginger in the previous year, which dampened the enthusiasm of farmers and reduced the ginger planting area to a certain extent last year. Also, drought and lack of rainfall across the country last year, resulted in lower yields per unit area. These two reasons have reduced the production of ginger by more than 30%, the inventory has decreased, and the price has risen. In addition, the drought also affected the growth of ginger, making this year's ginger smaller and not as good as in previous years.
"The farm-gate price of ginger this year is about ￥6.4/kg, which is half or even double that of normal years. The final price is currently about ￥14-￥15/kg, which compared with the past, the increase has more than doubled, and it is still rising. Moreover, this year's price increase was earlier, in previous years, the price increase generally did not occur until June and July, but this year it was earlier in March and April. In addition to the reasons for the reduction in production, the factor of human speculation cannot be ruled out. "
Ye said that the high price has reduced the market demand, the current sales volume is not large, and the sales are not good. However, due to the small supply, the price is still high even if the sales drop.
"In the international market, the current price has exceeded the acceptable range for customers, and if the price is too high, it will easily trigger more follow-up problems, so the current export volume is low, and the main sales force is in the domestic market. On the other hand, this year we imported more ginger from Southeast Asia, especially ginger from Myanmar.
"Ginger in the Chinese market is mostly imported from Thailand, Myanmar, and Vietnam. This year, the price of ginger in Thailand is quite high. In addition to the lower price, ginger in Myanmar is more suitable for the demand in the Chinese market than Vietnamese ginger in terms of quality, so it accounts for a larger proportion. "
"Our company has a sufficient inventory of ginger, about 5,000 tons. The white ginger that is being harvested and put into storage this season is from Guangxi. At present, we are handling export orders from Europe, the United States, Japan and other places, but the quantity is small. In addition, Brazilian ginger will go on the market in June and arrive in the European market in July, and the price of ginger may be adjusted after July, but it is still difficult to judge.”