As we enter May, the fresh ginger market experiences the influence of stockpiling. The price becomes stronger and farmers are hesitant to sell. Domestic market demand is growing and so is the speed of supply. The market price continuously rises under these conditions.
Based on data from previous years, such as the surplus of fresh ginger and the volume of ginger in storage, the fresh ginger supply in the second half of 2019 will be unable to meet market demand. This bodes equally well for traders with stock in storage and farmers.
Processing factory
Looking back on the fresh ginger market in 2018, we can safely say that it was a year full of disasters, such as frost, hailstorms, strong winds, and flooding. These extreme weather conditions limited the overall production volume of fresh ginger in 2018. The product quality also suffered. The reduced production volume resulted in high purchase prices, high retail prices, and high export prices.
Fresh ginger
Not only is the supply from production areas reduced, the supply volume of top-quality fresh ginger is extremely limited. The price is extraordinarily high. This has a negative backlash for fresh ginger. The main supply of ginger for export comes from traders with stock in storage. The storage volume is rapidly disappearing.
The supply speed will increase as temperatures rise. The main reason for this development is the difficulty of keeping ginger fresh in cellars when the weather becomes hot. Traders with ginger stored in cellars do not have much time left to sell their stock and ginger trade is speeding up. Production areas experienced excessive rainfall during the period when fresh ginger was growing and during the harvest season last year. This means that the ginger contains much fluid, which makes them more difficult to store without product quality suffering.
Fresh ginger
However, as the product quality of fresh ginger declined and the volume of top-quality fresh ginger is limited, the price remains high. Farmers seem reluctant to sell their fresh ginger. The average product quality of fresh ginger is poor this year. Add to this the reduced production volume and therefore reduced supply volume, and we can see why farmers are reluctant to sell their stock now and prefer to wait for the price to rise even further. The yield per hectare and the overall production volume of fresh ginger both greatly decreased last year in comparison with previous years. In some production areas farmers lost their entire harvest. Ginger farmers are all reluctant to sell their fresh ginger too cheap, instead they wait for the price to rise in the hope of recovering previous losses.
The fresh ginger market in 2019 may develop a situation where "top-quality products are expensive, but poor-quality products are cheap". In other words, the price of poor-quality fresh ginger will likely remain weak, while the price of top-quality fresh ginger has potential to grow even further.
Contact person: Zhang Yang
Company name: Anqiu Xinlong Food Co., Ltd.
E-mail address: xinlongfoods@163.com
Telephone number: +86 139 6364 0217