Last year the Chinese ginger market flourished. Many farmers were attracted by the profit margin in this market and shifted to ginger plantation. That is why the production volume of Chinese ginger increased this year. At the same time, the Covid-19 pandemic adds to the distribution cost and labor cost. These circumstances force traders to shift large volumes of Chinese ginger originally destined for the export market to the domestic market instead. That puts a lot of pressure on the price.
"There are no official data yet for the ginger production volume this year, but looking at the expansion of the overall surface area devoted to ginger plantation this year, compared to last year, we expect the overall production volume to grow by 10%-15%. When market prospects are positive, this is great news, but under current circumstances, a larger production volume is not good news." This is according to Jason Wang, Sales Manager at Anqiu Tailai Foods Co., Ltd.
Jason Wang continued: "The product quality of ginger in some production areas is less than ideal. That is primarily because these production areas suffered from excessive rainfall in the summer. Some of the ginger was submerged under water, and that is why the percentage of top-quality ginger is rather low this year. The ginger that does not meet product quality expectations is mostly absorbed by the domestic market. That puts pressure on the market price, which in turn has an impact on the export conditions."
For more information:
Jason Wang - Sales Manager
Anqiu Tailai Foods Co., Ltd.
Website: http://www.tailaifoods.com
E-mail: Jason@tailaifoods.com