The Chinese yuan appreciated from 6.57 per USD in April to 6.42 now. The Chinese yuan has been growing stronger in 2021. This has an impact on the export of Chinese fruit and vegetables. Looking at Chinese ginger export, for example, the order volume this year (up to now) is much smaller than in previous years.
"For overseas buyers the stronger yuan raises the cost price of import. That is a virtual price rise for overseas buyers, and so the competitive position of Chinese export ginger weakens. Overseas market demand declines. Apart from the impact of currency exchange rates, the growing supply of ginger from Brazil, Thailand, and Peru to Europe also weakens the position of Chinese ginger in the international market. In addition, the rising shipping cost further exacerbates the situation. Chinese export ginger faces significant challenges this year." This is according to Jason, sales manager at Anqiu Tailai Foods Co., Ltd.
Jason said: "Many overseas countries are gradually solving their problems with Covid-19, but this has not yet resulted in greater market demand. June to August is the slow season for the Chinese ginger industry. And on top of that the rising shipping cost and currency exchange rate push the price of Chinese ginger up. That is how Chinese ginger lost its relative price advantage in the international ginger market. Still, Chinese ginger remains a favorite with consumers across the globe."
Chinese ginger export conditions worsened in May and have not improved since. The overall order volume is much smaller than in previous years. There is no way to stimulate domestic market demand and relieve the pressure on the Chinese ginger industry. The domestic market price of ginger is gradually falling.
For more information:
Jason - Sales manager
Anqiu Tailai Foods Co., Ltd.