Entering May, the ginger market has been sluggish, and ginger farmers are thinking that the price will rise a few cents when they prepare goods for the holiday in May. But it did not go according to people's wishes, the holiday did not drive obvious consumption, and ginger prices did not rise but fluctuated and declined.
The holiday in May did not have a large impact on the ginger market, the trend of ginger prices was flat, and some farmers who were optimistic about ginger prices gradually reduced their expectations. Most of the farmers in the market are dealing with ginger of average quality or a bit rotten now, and they are still reluctant to sell the products with high quality.
After the holiday in May, the market demand for ginger decreased again, and the canceled transactions in the major washing ginger factories in Weifang production areas occurred repeatedly, and the vendors were picky and only offered lower prices, making farmers even more miserable. Some of the farmers had to sell products to them, while some with good quality products pulled the ginger back home, which cost labor and material resources and greatly dampened the enthusiasm of farmers to sell goods.
The reasons for the current decline in ginger prices can be simply summarized as the following four points:
1. Ginger is cheap, ginger farmers' enthusiasm for planting is reduced, and the amount of ginger used as seeds for planting is reduced.
2. Affected by the pandemic, the catering industry has been in a state of opening and stopping, and the domestic market demand is oversupplied.
3. People in the industry such as stockists and ginger farmers can't see hope, and many people want to give up.
4. The export volume decreases, and the price of export ginger at the processing plants is not proportional to the cost of labor, material resources and freight, resulting in excessive additional costs.
All in all, the holiday in May had little impact on the overall market of ginger, and there was no centralized stocking before the holiday, and the sales were only to maintain the basic demand. After the holiday, some ginger farmers lost confidence, and they were more eager to deal with the general quality of gingers, and the price in various places was adjusted in a pattern of shock. Until the pandemic is completely finished and the market consumption capacity is restored, ginger prices will continue to run smoothly but weakly in the short term.
Source: Zhongjiang