"The purchase price of Chinese ginger in domestic production areas recently showed a significant rise. However, the price of Chinese ginger in overseas markets declined. Since Chinese ginger will soon enter the off season, and Brazilian ginger is currently entering the market, I expect our export volume to decline in the next few weeks." This is according to manager Ma of Anqiu Xinheng Food Co., Ltd.
Anqiu Xinheng Food mainly exports ginger to France and Italy. "The markets in these two countries gradually open up again now that the COVID-19 pandemic is slowly being brought under control. Market demand is still in the process of recovery. As for distribution, sea transport has not yet completely recovered. The number of available ships is quite small and this creates a shortage in the transport industry. We have to inform transport companies of our needs about 10 days in advance," said manager Ma.
"The export price of Chinese ginger destined for the European market is around 1,700 USD per ton this week. That is an increase of 150 USD per ton in comparison with the export price two weeks ago. The main reason for this price fluctuation is the impact of the COVID-19 pandemic on the industry. Ginger processing factories are unable to purchase raw ginger. Furthermore, most of their products are bought by traders who stock their warehouses. Since the warehouses are now almost empty, many exporters personally visit ginger production areas to restock their empty warehouses. In addition, traders are speculating on the ginger market. All of these factors encourage a price increase."
Manager Ma further explained, "although the export price shows a significant rise, the retail price in overseas markets actually dropped. Our clients in the European market have told us that the retail price of ginger dropped by nearly 10% in the last two months. This is mainly because Chinese traders exported large volumes of ginger to Europe last month, and this volume is not yet absorbed by the European market. In other words, market supply is greater than market demand, which means the price drops."
"The overseas market is slowly returning to business as usual. We are now exporting 2-3 shipping containers full of ginger every week. This export volume is nearly 50% smaller than in comparison with the last few weeks. I expect the export volume to decline even further in the next few weeks," said manager Ma. "Brazilian ginger will enter the European market in the middle of May. The peak of their retail season will continue until November. The price of Brazilian ginger is always slightly lower than the price of Chinese ginger in the first few weeks of the Brazilian ginger season. That is one of the main reasons the arrival of Brazilian ginger has an immense impact on the Chinese ginger market. However, it is still too early to say what the concrete impact will be," said manager Ma.
Anqiu Xinheng Food is an export company specialized in Chinese ginger. The company has an annual export volume of 1,500 tons of fresh ginger.
For more information:
Mr. Ma - Manager
Anqiu Xinheng Food Co., Ltd.
Tel.: +8615666066879
E-mail: jacky.ma@xinhengfoods.com