“In June, the export price of Chinese ginger has soared. There are two main reasons for this. First of all, due to the natural disasters in 2018, the production and quality of ginger this year is not as good as last year. In general, farmers are reluctant to sell their ginger, resulting in tight supply. Secondly, processing plants and stock dealers have been stocking up to prepare for export in the second half of the year, leading to high market demand.”Jim of Qingdao Dawei Tianyuan Foodstuff Co., Ltd shared.
Ginger cultivation center
“The current price is stable, down from the highest points seen last month, but still 40% higher than the same period last year. As the current stock is low, and Europe is about to enter the peak demand season, I expect that the export price of Chinese ginger will remain steady while rising slightly in July.”
Ginger sorting workshop
“In terms of exports, the recent surge in ginger prices has had some impact on the volume. Customers were cautiously observing when ginger prices increased slightly, and the volume of orders has decreased after the price increased sharply, as sales prices in different markets were not high. During this period, Europe was still in the demand off-season, where the demand has not changed significantly. However, through our recent communication with European customers, the current price is more difficult for them to accept, and some customers have therefore switched to Brazilian ginger, so the order volume from Europe in the later period could also be affected.”
“The new harvest season will kick off in September. Judging from the current situation, the ginger from Shandong has not been affected by natural disasters, and the production and quality are expected to be higher than in 2018. We mainly export ginger to Europe, Southeast Asia and the Middle East, and our ginger exported to the European market meets the EU-MRL standard. We are also getting our organic ginger certified, and the process is expected to be completed in October this year. As Europe is focusing more on checking MRLs, the supply in the second half of the year is expected to be lower, especially high-quality ginger that meets the EU-MRL standard, and the price may rise significantly.”
QINGDAO DAWEI TIANYUAN FOODSTUFF CO., LTD.
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