The price of Chinese ginger is relatively high in comparison with previous years. This has a direct impact on the ginger market conditions in export destinations such as Dubai. Mr. Yan of Super Harvest Foodstuff Trading LLC gave his view on the ginger export market.
The ginger market conditions in Dubai and China are very different: "The price of Chinese ginger in the domestic market was around 2 yuan [0.28 USD] per 0.5 kg in April and May, but this quickly rose to 4 yuan [0.57 USD] per 0.5 kg. Ginger supply to the market in Dubai was abundant during that period.
Furthermore, shipping containers full of ginger that were dispatched previously began to arrive in Dubai port. The price of ginger in the Dubai market was on the same level as the cost price, around 15-17 dirham per box (ginger packed in boxes of 5 kg cost around 2.8-3.2 yuan [0.40-0.45 USD] per 0.5 kg). While the price of ginger in the Chinese market was high, the market price in Dubai was low because supply was abundant."
"However, the high price of Chinese ginger pushed up the cost price of ginger that was dispatched later in the season. At the same time, ginger traders in Dubai were hesitant to sell and preferred to store their ginger stock in warehouses. The price therefore began to rise. More than that, the cost price of ginger in the Chinese market continued to rise. Even though the price of ginger in Dubai did not rise at the same speed as the price of Chinese ginger, the impact was clearly visible. Chinese exporters saw their export volume decline."
"The price of ginger in Dubai showed a visible growth in July. The price increased to around 19-22 dirham per 5 kg (3.6-4.2 yuan [0.51-0.59 USD] per 0.5 kg). The main reason for this development is on the one hand because storing ginger in warehouses added to the cost price and on the other hand because the volume of new supplies decreased. The overall supply volume was limited. When the price of ginger in Dubai began to rise, Chinese exporters began to receive more orders from Dubai. The high price is expected to last 2-3 weeks. We expect the shipping containers with new supplies to arrive by then. After the shipping containers arrive, the supply volume grows, and the price will likely drop again. However, the risks involved in the ginger trade are clearly growing."
"Dubai is a transfer port. While some of the ginger that arrives here is absorbed by the local market, much of it is destined for Saudi Arabia, Bahrain, and Kuwait. The volume of ginger in storage has declined, the volume of new arrivals is small, and the cost price has increased.
Quite apart from these factors, the "Festival of Sacrifice", celebrated in the Middle East, also pushed up market demand. The price increased to around 33 dirham per box. The cost price is around 22 dirham, so there is enough room for profit in this market."
"Super Harvest Foodstuff Trading LLC is a company located in Dubai and trading in fruit and vegetables. Our main products include Chinese ginger, carrots, garlic, Chinese cabbage, white radish, and apples."
For more information:
Mr. Yan - Manager
Super Harvest Foodstuff Trading LLC (Dubai)
Tel.: +97 152 588 6715
WeChat ID: 1018733269
E-mail: fresh8869@outlook.com