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"Excessive rainfall reduces Chinese ginger production by 20%, but organic production increased by 30%"

The new harvest season of Chinese ginger has already begun. The new harvest is expected to enter the Chinese market in the middle of November, after the ginger has spent 40 days in storage. The overall production volume declined last year, while the outbreak of Covid-19 stimulated market demand for ginger, which has resulted in a situation where the storage volume of ginger is running low. The price even temporarily increased.

The higher price is expected to last until fresh ginger enters the market in November. Manager Chen of Juxian Taiyuan Foodstuffs Co., Ltd. recently talked about the current conditions in the Chinese ginger market.

"Chinese ginger farmers look with hope at the high ginger price, and they are quite eager to plant ginger this season. The production capacity increased by 20% this year. However, the actual production volume per hectare declined. Excessive rainfall flooded ginger production areas. This disaster caused the ginger production volume per hectare to decline by 20%. The overall production volume is therefore more or less the same as last year. The ginger from flooded production areas does not meet the standard for the ginger export market. Many of the ginger roots were completely soaked," explained manager Chen.

"As for the price, yellow ginger is almost 80% more expensive than around this time last year. The current price is around 7 yuan [1.05 USD] per 0.5 kg. The price is currently high because the previous harvest season is long over, and the new harvest will not enter the market for another month. Market supply is running low. The current price of yellow ginger export to the Netherlands is around 2,700 USD per ton, while the export price of dried ginger is around 3,000 USD per ton."

The harvest of organic ginger will begin on the 25th of October. "Our organic ginger farm is located in the hills of Guangxi. The terrain is extremely well-suited for ginger production. These hills do not easily flood. On the contrary, the rainfall improved the product quality of our organic ginger this year. Our production volume per hectare increased by 30%, and the overall surface area devoted to organic ginger plantation remained the same. Our organic ginger is large and plump. We expect the production volume to increase in comparison with last year, but we do not know the actual production volume until the harvest is brought in."

Juxian Taiyuan Foodstuffs exported the first shipping container of Chinese ginger to New Zealand last year and followed up with several more. "However, the capacity of the New Zealand market is much smaller than in other countries. Furthermore, the price of Chinese ginger is somewhat higher than the price of ginger from other countries. That is why we will not focus too much on the New Zealand market."

Europe remains the main export market for Juxian Taiyuan Foodstuffs. The company maintains close connections with loyal customers and also managed to begin relations with several new clients in Germany and the Netherlands. The company also started a strategic cooperation with a supermarket chain in Sweden. European market demand for organic ginger is high, but there are only a few Chinese companies who produce organic ginger. Their supply volume is limited. When asked why their number is small, manager Chen explained that the risk in organic ginger plantation is high. Clients can sue the supplier when tests reveal excessive trace amounts of heavy metal or chemical pesticides. Many suppliers are unwilling to take that risk, and they produce GAP-certified ginger instead.

When asked about market developments in the next few weeks, manager Chen replied, "the ginger price will remain high until fresh ginger enters the market. Chinese ginger export to Southeast Asia and the Middle East begins in early November, and Chinese ginger export to Europe begins in early December. Once the export season starts, the price will drop a second time. However, looking at conditions in the production areas, the price of fresh ginger is still likely to be about 30% higher than around this time last year."

Juxian Taiyuan Foodstuffs is a Chinese ginger supplier specialized in processing and export. The company was established in 1999. The company mainly exports ginger to Europe and North America. The company is GAP, SMETA, EU Organic, and USDA Organic certified.

For more information:

Erin Chen - Manager

Juxian Taiyuan Foodstuffs Co., Ltd.

Tel.: +86 18210938299 

E-mail: jxtyfood@hotmail.com 

Website: www.jxtyfood.com 


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