Ginger and garlic market update
China: New garlic Yunnan, ginger prices low
The garlic market is currently stable. Garlic prices started to rise relatively early in the weeks towards the Chinese New Year in the middle of December and the beginning of January. Prices remained high until the start of the Chinese New Year on February the 7th.
The cold weather the end of January could have damaged some of the garlic crop that is now growing. It is too early, however, to establish this. More should become clear in April, when the first crops begin to appear above the surface. In April farmers will also start to give out their first harvest forecasts.
Most of the garlic factories are currently closed for two weeks during the New Year festival. They will re-open by the end of this week, after which trading will restart. Prices have come down slightly since the New Year, because there are still few buyers on the market. White garlic is sold locally for around 9 Yuan per kilogram, field garlic for 5 Yuan per kilogram.
Prices are expected to remain stable. The new garlic crop from Yunnan province, in the South of China, is entering the market. This crop will be sold in March and April and competes with current garlic stocks in Shandong, Henan and Jiangsu province. The harvest period in Shandong and Henan starts later during the year in May.
Ginger
Total ginger output in 2015 is estimated to be one and half times more than the output in 2014. the large volume has had an effect on prices, which have been low since the start of the season in November.
Current ginger prices are low at 2 Yuan per kilogram. Farmers and factories are currently holding back on sales. They anticipate that ginger prices will rise later this month, one or two weeks time. There was almost no price difference in the weeks before and after the Chinese New Year.
Ginger sales prices on the European market are also low, with prices varying between 11 Euro and 16 Euro for a 13.6 kilogram box.
The recent cold weather has not affected the ginger crop, as the planting season has not started yet. Ginger in Shandong province will be planted from April onwards.