"The Chinese ginger market has entered its off season. On the one hand, the domestic market price remains high, but on the other hand, overseas market demand has fallen. We have virtually stopped exporting ginger to Europe because of these two reasons," said manager Ma of Anqiu Xinheng Food Co., Ltd.
"The current domestic retail price of Chinese ginger is around 4.85 yuan [0.69 USD] per 0.5 kg, while the export price is around 1,850 USD per ton. The domestic price is 20% higher than last year. There are two reasons why the price is higher. First, the production volume per hectare is lower this year, which means that the supply volume is lower. When market supply does not meet consumer demand, the price goes up. Second, some companies speculate on the ginger market and artificially keep the price high."
"While the domestic market is doing well, European market demand dropped. The difference between the domestic price and the export price means that we have virtually stopped exporting ginger to Europe. The main reason for a decline in European market demand is the arrival of summer. People go out to enjoy themselves, and market demand for ginger drops. In addition, the period between May and July is the off season for Chinese ginger. This is the time of year when ginger from Brazil and Peru enters the market in large volumes. The additional market supply has a great impact on the Chinese ginger industry, especially because the Chinese ginger price is so high that our market position is not very competitive."
When asked about market prospects in the next few weeks, manager Ma replied: "We expect overseas market demand to recover in late July. At that time the domestic market price of ginger has likely come down a bit." Anqiu Xinheng Food Co., Ltd. is a specialized ginger export company. The company mainly exports to France and Italy. Xinheng Food exports around 1,500 tons of ginger per year.
For more information:
Mr. Ma - Manager
Anqiu Xinheng Food Co., Ltd.
Tel.: +86 156 6606 6879
E-mail: jacky.ma@xinhengfoods.com