The Chinese ginger market has experienced major fluctuations in the last few weeks. The ginger supply from many countries declined, which in turn pushed the price up. Kevin Li of Qingdao Sinonut Import & Export Co., Ltd. recently explained the current conditions in the Chinese ginger market and the general impact of the COVID-19 pandemic on ginger export:
"We have resumed business and are already operating at normal levels. Furthermore, we are working hard to make up for lost time. The domestic ginger market is showing signs of stability. One of the reasons for the recovery of the domestic market is the decline of ginger export. Although domestic market demand decreased, the price maintained a stable position."
"Of course, overseas market demand for Chinese ginger is still quite large, but many countries have closed their borders. Chinese companies have difficulty transporting their products to overseas markets. The COVID-19 pandemic has created much uncertainty in the international ginger market. Ginger exporters do not know whether their deliveries will reach the client on time or at all. Some Chinese companies therefore decided to limit their ginger export volume and in doing so avoid the risk of greater financial loss. They shifted their ginger products to the domestic market. At the same time, as restaurants and other businesses resume normal operations, the domestic market demand for ginger grows."
"We are still exporting Chinese ginger, but the volume is smaller than usual. The COVID-19 pandemic increases financial risks in the international ginger market. We are particularly careful in this situation and sign strict agreements with our import partners. In addition, we are expanding our sales activities in the domestic market. Our export price increased by 20% and demand is still high, but only when the COVID-19 pandemic is under control can we increase our deliveries. IN the end, the ginger supply volume is more than sufficient this year. Furthermore, the quality of ginger from the 2019-2020 production season is much better than the quality of ginger from the year before. We therefore expect market demand to remain strong."
For more information: