Although it is the peak season for ginger exports, the price remains relatively stable and the export volume is not substantial. Rising sea freight costs have placed considerable pressure on suppliers and merchants. Mr. Zhang, Sales Manager of Jining Greenstream Fruits & Vegetables Co., Ltd., a ginger planting and exporting company in Shandong, provided insights into the current market conditions and export situation.
"In terms of pricing, the current export price is relatively stable, with the FOB price of air-dried ginger around ¥10,000 per ton. However, due to rising costs, demand is weak, and the overall export volume is not significant."
Jining Greenstream Fruits & Vegetables Co., Ltd. mainly exports agricultural products such as ginger and garlic to Eastern Europe and Asia. "At present, overall demand abroad is not strong, and the market demand is insufficient to support the current price. Recent exports to Russia face challenges due to extended sea shipping periods and uncertainties in the payment period," said Mr. Zhang.
The new ginger is expected to be harvested in mid-October, and sales are expected to start in January next year. "Due to the good selling price last year, farmers made substantial profits. Assuming one hectare of land can produce 75 tons of ginger at a price of ¥3 per kilogram, farmers are more motivated to plant this season," Mr. Zhang explained.
"Sea freight prices remain high, with the current rate to major European ports reaching as high as $9,000 per container. However, sea freight prices are expected to drop starting in July."
Regarding market expectations for the coming weeks, Mr. Zhang stated, "With changes in temperature and adjustments in eating habits in some regions, the demand for ginger may see an upward trend. Additionally, a reduction in the number of growers and storage companies could lead to a price increase to some extent."
For more information:
Zhang Shuhan