The first ginger of the season that was exported from China to overseas markets was harvested too early and the product quality was less than ideal. Some even showed black spots. This supply volume of early-season ginger is already sold out and was absorbed by the overseas market. The product quality of more recent supply is up to standard.
"Our order volume and export volume is currently stable, but the main problem is still the shortage of shipping containers. Cold storage containers are particularly difficult to find. The regular price of export from China to Europe is around 2,000 USD per container. That price has already increased to around 9,000 USD per container. That is nearly four times the original price," said manager Chen.
Furthermore, the price had already increased because the storage volume of last season was quite low and market demand exceeded supply. The price of ginger is nearly 20% higher than around this time last year. The export price of Chinese ginger destined for the Netherlands is currently 2,300 USD per ton. The export price for the European market is almost 40% higher than around this time last year."
"Starting from December last year, the export volume rapidly expanded. And the overall export volume last year was already higher than in recent years. The main reason for this rise is the outbreak of Covid-19, which stimulated consumer demand for vegetables that strengthen the immune system."
However, the rising shipping cost put more pressure on the competition with other ginger supplying countries, said manager Chen. "Some overseas buyers switched to suppliers from Peru because of the high shipping cost. However, the production volume in Peru is much lower than in China. And Peru still struggles to bring the outbreak of Covid-19 under control. In the end, however, although Peru creates some competition, there is no real threat to Chinese ginger export."
When asked about future prospects for the Chinese ginger market, manager Chen replied: "This year the production volume was abundant, but the weather conditions were not great and the ginger retains a lot of moisture, which reduced the product quality. The ginger spoils easily. In the second half of this season, once some of the ginger in storage has been absorbed by the market, there may be a supply shortage that pushes the price up."
The new ginger seedlings will be planted in March. The overall surface area devoted to ginger plantation is likely to expand significantly. That is mostly because the ginger price has been high for two years. Farmers are quite optimistic about the upcoming season and eager to expand the production volume and increase profit.
Juxian Taiyuan Foodstuffs Co., Ltd. is a specialized supplier and exporter of Chinese ginger. The company mainly exports to Europe and North America. The company is certified GAP, SMETA, EU Organic, and USDA Organic.
For more information:
Erin Chen - Manager
Juxian Taiyuan Foodstuffs Co., Ltd.
Tel.: +86 18210938299