The harvest season of Chinese ginger began in the middle of October. The overall surface area devoted to ginger plantation in Shandong expanded this year, and the product quality also improved in comparison with last year. After the harvest, fresh ginger is stored in warehouses for a period of 40 days. Then, at the beginning of December, Chinese ginger export to Europe begins. Manager Qiao, a spokesperson for Anqiu Linfu Foodstuffs Co., Ltd., recently talked about the current conditions in the Chinese ginger market.
The Chinese ginger production volume significantly declined last season. Many visiting traders entered the market to speculate. Furthermore, after months of sustained sales, the volume of preserved ginger in warehouses is quite low at the moment. The price naturally increased because the supply volume declined. The FOB price of Chinese ginger destined for Rotterdam is around 2,300 USD per ton.
Many overseas importers reduced their order volume of Chinese ginger because the price was too high. They prefer to wait for the new harvest to enter the market, in the hope that the price will come down, but manager Qiao says that the market requires some time to switch from preserved ginger to fresh ginger. The price is not likely to drop as soon as fresh ginger enters the market. "We expect the price of preserved fresh ginger to settle around 1,800 USD per ton and maintain that level until April or May next year when the reserves in storage will begin to show a significant decline."
"Last year we exported around 500 shipping containers. We expect to break that record this year. Our company mainly exports preserved fresh ginger. Although overseas market demand for organic ginger is huge, the number of organic ginger suppliers in China is small. This is mainly because organic ginger has to meet high standards when it comes to levels of pesticide residue. This raises the cost price of organic ginger and carries high risks for the supplier."
Anqiu Linfu Foodstuffs owns a ginger farm in Anqiu City, Shandong. The farm covers a surface area of 6.7 hectares. The company also owns a cold storage warehouse with a capacity of 10 thousand tons. The average storage volume is around 6 thousands tons. "Clients in different countries have different requirements for the way we package our ginger products. Some require small plastic boxes, while others prefer cardboard boxes. We are continuously adding packaging methods to satisfy the varied demands from our customers."
For more information:
Qiao Yongjie - Manager
Anqiu Linfu Foodstuffs Co., Ltd.
Tel.: +86 13406662255