Fresh ginger prices will likely suffer from strong fluctuation

The wholesale price of fresh ginger recently showed a drop. The wholesale price of fresh ginger in some production areas showed a drop of more than 20%. People in the industry are worried that fresh ginger prices will suffer from strong fluctuation. Actually, ginger prices this year are not considered cheap in comparison with last year. Data shows that the retail price of fresh ginger in Linyi in early October of 2016 was 6.06 yuan [0.92 USD] per kilo. Compared with those prices, this year's price of ginger has increased by 33.33%.

The price of fresh ginger was high from the second half of 2013 until 2014, and analysts believe that many ginger farmers experienced a taste of rich profits. A large number of ginger farmers hoped to cash in on this trend and planted ginger. Nationwide the surface area of ginger production continues to expand and the overall supply of fresh ginger continues to increase. Furthermore, in recent years the market prices for fresh ginger have been good, so ginger farmers held back sales to avoid flooding the market. They stored large amounts of ginger, so that the available supply of mature ginger is rather large. The large amount of fresh ginger that enters the market now further intensifies market saturation. Since the ginger harvest of October 2015 entered the cellars there has been a large, nationwide supply which obviously exceeds demand. Perhaps market demand will increase following the shift towards colder weather, and the price of ginger may show a slight rebound.

Source: Yangcheng Evening News

Publication date: 11/24/2017


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