The ginger production volume greatly declined last season. After months of ginger sales the volume left in storage is dwindling. The ginger reserve is limited and market supply does not meet market demand. That is why the price recently increased. Many overseas importers have reduced their import volume in response to the rising price of Chinese ginger. They are waiting for fresh ginger to enter the market.
According to manager Zhang, spokesperson for Jinan Wantao Foodstuffs Co., Ltd., old ginger from storage is mainly sold in the domestic market. Domestic market demand recently increased and the current wholesale price is more than 8 yuan [1.20 USD] per 0.5 kg. That is more than 2-3 times the price 1.5-3.0 yuan [0.23-0.45 USD] around this time last year.
"Buyers already purchased the first fresh ginger of the season almost two weeks ago. The overall surface area devoted to ginger plantation expanded this year. The production volume is expected to turn out much bigger than last year. The fresh ginger is first stored for a period of 40 days before the preserved ginger enters the market. The preserved ginger enters the export market for the Middle East in the middle of November, and the export market for Europe in early December," said manager Zhang.
"The overall surface area expanded in comparison with last year, and the product quality is better too. The price is likely to fall in comparison with last year because the supply volume is larger. I expect the export price to settle around 1,000-1,300 USD per ton once the new harvest enters the market."
In addition to fresh ginger, Jinan Wantao Foodstuffs also exports garlic. The main export markets include Europe, the Middle East, and South Asia. The price of Chinese garlic has been low for months, which stimulates overseas market demand. Traders speculate that there is still room for the price to rise.
For more information:
Zhang Chunjian - Manager
Jinan Wantao Foodstuffs Co., Ltd.
Tel.: +86 13561730391
E-mail: wantaogarlic@china.com