The initial outbreak of the corona virus was more than 2 months ago. The ginger production companies in Shandong have already resumed operations. Even ginger export has been up and running for 3 weeks now. However, the rapid spread of COVID-19 in overseas countries has made Chinese exporters worried that the export market will suffer a second blow from the corona virus. Manager Qiao of Anqiu Linfu Food Co., Ltd. recently shared his insights into the current conditions and future predictions for the Chinese ginger market.
"Our factories in Anqiu, Shandong, have already resumed regular operations. We are processing ginger and distributing products as usual. After we restarted operations, we dispatched our first shipment in late February. This shipment should arrive in the European market in late March. The supply speed is somewhat slower than normal. The raw material for ginger production in China cost around 5.2-5.6 yuan [0.74-0.79 USD] per kg. That is 30% cheaper than around this time last year. The export price followed the same trend. The FOB price of ginger in Rotterdam harbor is around 1,550 USD per ton."
"The volume of orders we recently received is around 50% smaller than around this time last year. The main reason for this development is the spread of COVID-19 to a growing number of countries across the globe. Consumer demand in overseas markets is not strong enough to stimulate ginger export. We are worried about future sales. The market prospects are uncertain," explained manager Qiao. "Many ginger traders in the domestic market are still selling old ginger. The volume of ginger in reserves is 30% higher than around this time last year. Furthermore, the surface area devoted to ginger plantation expanded this year. The new harvest of ginger is expected to enter the market in the middle of October. If the old ginger reserves are not emptied when new ginger arrives on the market, then the price of old ginger will rapidly decline."
Anqiu Linfu Food has a ginger plantation in Anqiu that covers an area of 6.7 hectares. The company also owns a refrigerated warehouse with a capacity of 10 thousand tons. The average storage volume is around 6 thousand tons. "Clients from different countries have different requests for packaging, from small plastic boxes to cardboard boxes. We are also adding new packaging methods to satisfy the demands of even more customers."
For more information:
Anqiu Linfu Food Co., Ltd.
Tel.: +86 13406662255