The price of the ginger has been falling in China, according to Jason Jiang, sales manager of Qingdao Renhe Ginger Industry Development Co. Ltd. In this country, ginger is harvested around 15 October so that it can be exported at the beginning of December. The raw material is stored for a minimum of 45 days before becoming a finished product.
The following chart showcases the evolution of raw ginger prices in December.
“Regarding demand, I believe it will increase, because the price is much cheaper than last year,” affirms Jason. “Last year, many importers reduced the number of purchases because of the high price, as high prices equal high risks; at the moment, however, it is cheap, so the risk is lower and this gives them chances to capture the market. Competition is expected to be fierce.”
In January, a total of about 450 tonnes of fresh ginger and air dried ginger were exported to the EU, Canada, Russia, and other markets; the usual volume exported per week is about 110 tonnes.
Evolution of the market
Jason explains that “based on previous experiences, prices in February should start to increase again. The main reasons for this are:
1. Fruit Logistica: Held in February every year, where many buyers and sellers will reach deals and make orders
2. Because of the Chinese New Year. Growers will prepare for the festival and many factories will take a holiday from week 8 to week 9, which will entail lower volumes of ginger in the market and consequently higher prices.
Sales Manager
Fax: +86-532-8539 0018
Phone: +86- 138 0898 6220
Skype: Jason--jiang