Strong pricing on imported Chinese ginger to the U.S.
With Chinese New Year having passed, ginger is once again on the move from China to the U.S.
“The market right now for ginger is a little bit stronger because for Chinese New Year, they close the plants and stop shipping,” says Juan Pablo Lozano of Miami, Fl.-based Garland, LLC. “It was not enough though beforehand so the market went up a little.”
Given that it takes over a month between ordering ginger from China and receiving it in the U.S., prices often fluctuate in that time. “So sometimes when we buy it, the market may be high and by the time we receive it, it’s cheaper and we lost money. And sometimes we buy it cheaper and then by the time we receive it, it’s up and we made our money,” Lozano adds.
Lozano sources most of its ginger from China, though it also does supplement with Peruvian organic ginger. Its preference is China thanks to proper handling methods that don’t allow for product damage. “Ginger always arrives very wet so we palletize them with holes in the pallets and put ginger outside on the dock with big fans so the air goes through and dries the ginger,” says Lozano. “This avoids mold problems and decay. If the wetness doesn’t go and the humidity is there, then there are problems.”
Meanwhile demand continues to increase on ginger, which consumers use for both food and health purposes. “We’ve been increasing our volume every year. We used to sell one container a month and now we sell one container a week or more,” says Lozano. “The demand on ginger is great.”
And right now, that demand helps make for strong pricing. “Last year at certain times it was cheap. But now it’s $22-$25 FOB, which is pretty decent,” says Lozano. “The average price though is about $18-$20.”
Looking ahead though, he adds that he’s anticipating a relatively steady market with prices falling into that $22-$23 average.
For more information:
Juan Pablo Lozano
Tel: +1-(305)-636-1607 Ext. 102
Publication date: 3/6/2018
Author: Astrid van den Broek
© 2018 FreshPlaza. All rights reserved.