Ideal price puts South American ginger in dominant market position this year

"The new production season of Chinese ginger has already begun. Weather conditions were great in Shandong this year and the ginger production volume increased by 10% in comparison with last year. Furthermore, the product quality is better than last year." This is according to manager Qiao of Anqiu Linfu Foodstuffs Co., Ltd.

"Old ginger from 2018 suffered from rot and easily sprouted because rainfall was excessive during the 2018 production season. This season, however, the product quality is much better and the ginger is better able to endure storage. Many farmers therefore choose to store their ginger instead of releasing their products on the market. This pushes the export price up. The export price is already 10% higher than last year," stated manager Qiao.

When asked about international competition in the ginger market, manager Qiao explained, "Peruvian ginger has a great impact on the conditions of China's domestic ginger market. The production cost of Peruvian ginger is low and the transport cost is low. Many European customers therefore turn their attention to South American ginger. The international ginger market experienced several price fluctuations, and we received fewer orders from Europe because of this development, but we also received more orders from Southeast Asia. Our overall export volume is steady at 700 shipping containers."

"China occupies around 60%-65% of the international ginger market. The remainder of the market is divided between ginger from South America and Southeast Asia. Although the high export price of Chinese ginger makes it difficult to dominate the market outright, the high product quality gives Chinese ginger a competitive edge. Small-scale ginger farmers do not have the capacity to set the price, but if the domestic ginger industry unites and keeps the production cost low, then we are sure that China will dominate the international ginger market," stated manager Qiao.

Anqiu Linfu Foodstuffs has a ginger plantation that covers 6.7 hectares in Anqiu, Shandong, and also a refrigerated warehouse with a capacity of 10 thousand tons. The storage volume is around 6 thousand tons in a regular year. "Clients from different countries have different requests when it comes to packaging, from small plastic boxes to cardboard packaging. We are continuously innovating our packaging to satisfy the demands of our clients."

For more information:

Qiao Yongjie - Manager

Anqiu Linfu Foodstuffs Co., Ltd.

Tel.: +86 13406662255 


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