While the level of Chinese ginger reserves is dropping quickly, European market demand is still high. As the low season of ginger begins in early May, the market is expected to become slightly weaker, however European importers are uncertain how the market will develop in the next few weeks.
“In the past few weeks, German and Dutch markets maintained high demand for ginger. Local wholesalers are buying large volume from us, what comes in is sold immediately.” Mr. Settels said, “At the moment, we order 6 containers of ginger from China per week. Although the import volume shows a declining trend, but in general, our sales volume is nearly 20% higher compared with the same period in previous years. This is in particular because people are paying more attention to their own health during this COVID-19 pandemic. They think ginger can protect their health in a natural way. Therefore, ginger sells very quickly at retail chains.”
“Regarding the global supply, the other major ginger exporter, Peru, is experiencing many residual-curfews, which massively impacts their capacity to harvest and process ginger. Peruvian ginger is shipped to the US in large volumes, while its exports to Europe is currently slumping.” Mr Settels said. “Due to shortage of supply from other countries, Chinese ginger is sold in the European market at solid prices. At the moment, the CIF price for organic ginger to Germany is € 2.50 to € 2.80 / kg, and the price for conventional ginger is from € 1.70 to € 1.90 / kg.” Mr. Settels said.
When asked about how the ginger market will develop in the next few weeks, Mr. Settels said, “Because of the weak harvest in 2019, and the high demand from the market in the spring, the ginger stock in China is relatively low. I expect the ginger market will become slightly weaker, but it is difficult to tell how big the market fluctuation will be. As for shipment, the cost of sea freight from China to Europe remains the same at the moment, but with the shortage of freight space carried out by the orators, we expect the freight cost will rise in May.”
Jiahe Food GmbH is a subsidiary company of Jiahe Group China. The company imports more than 500 containers of ginger from China per year. Germany and the Netherlands are their main markets. Their products are mainly sold to local supermarket chains and to wholesalers.
Ralf Settels
Jiahe Food GmbH
Luxemburger Str. 9, 41812Erkelenz
Tel.: +49 2431 9724212 oder 9724214
rs@jiahefood.eu