Global demand for fresh ginger is huge at the moment. This is the low season for Brazilian and Peruvian ginger production, which means that the majority of ginger supply to the international market comes from China. This is the peak of the export season for Chinese ginger suppliers. One of the export destinations that relies on Chinese ginger export is Dubai. Demand from this market has been growing in recent weeks.
Mr. Yan is a Chinese ginger exporter who supplies the market in Dubai. He analyzed the current market conditions as follows: "Dubai mainly imports ginger from both China and Thailand, but most of the supply comes from China."
"Chinese companies experienced difficulties in terms of production, processing, and distribution when COVID-19 broke out in January. The export of Chinese ginger significantly slowed down as a result of the epidemic. At the same time, prices in the Dubai fruit and vegetable market began to rise because importers worried about the implications of trade slowing down. Container ships generally take about one month to travel from China to Dubai. The shipping containers that arrived after trade slowed down were too few to make up for the supply shortage. The price therefore continued to rise over a long period of time. The price already reached the highest position in the last five years. This is also the longest sustained price rise in the ginger trade between China and Dubai."
"The outbreak of COVID-19 has recently been brought under control in China. Ginger export companies have reopened their factories and the ginger export volume shows significant growth. The ginger supply to Dubai is also growing, and the price now shows a downward trend. However, the COVID-19 pandemic is gradually spreading across the globe. The situation in Dubai grows more severe by the day. The Dubai government is forbidding people from going out and the people are therefore stockpiling products at home. As a result, the consumer market in Dubai has a greater ability to absorb the increased supply volume of Chinese ginger. This in turn caused the price to increase again. The price of Chinese ginger is going up and down like a roller coaster. There are high peaks and low points as well."
"The port of Dubai is well-known for quick and convenient custom clearance and distribution. The products that arrive in the harbor are swiftly delivered to the market. The swift and efficient distribution network helped the market to stabilize over time, but the outbreak of COVID-19 still caused much uncertainty in the market. Take the relationship between supply and demand, for example, the pandemic has immediate consequences for both supply and demand. Another uncertainty is the effectiveness of the quarantine measures, because the ability to halt the spread of COVID-19 is an important step towards the restoration of production as well as market recovery."
Super Harvest is a trading company specialized in the sales of fresh ginger, garlic, carrots, apples, and lemons in Dubai.
For more information:
Super Harvest Foodstuff Trading LLC (Dubai)