The new season of ginger began to be harvested in early October and has now been put into storage. Due to the low price of ginger last year and the lack of good management by the growers, the yield per unit has decreased significantly this season. Affected by the production reduction, the price of ginger has continued to rise recently. On the other hand, the demand in major foreign markets such as the United Kingdom and Germany is limited, and the market for exports to Southeast Asia is not very good.
Manager Zhang, the sales director of Jining Greenstream Fruits & Vegetables Co. Ltd. first introduced the situation in terms of production areas.
"In terms of the market, the price of ginger had been running at a low level in the first half of this year, and did not rebound until three months ago. The current price continues to rise. Taking unprocessed ginger as an example, compared with the price of 1.6-2.0 RMB/kg in the same period last year, the current price of 6-7 RMB/kg is almost 4-5 times higher.
"There are two reasons for this,” Zhang said, "First of all, the price was low in the first half of the year, and farmers thought it was unprofitable, so neglect of management was the main reason for the reduction in production. Second, due to the heavy rain in summer, many ginger seedlings were damaged and there was a certain reduction in production.
"In terms of export, fresh ginger can be exported in mid-November and air-dried ginger is expected to be exported at the end of December. At present, the old ginger from last year is still being exported. However, the storage period of old ginger is already short, and the risk of delivery is higher. At present, only a small amount is sent to nearby markets such as Southeast Asia. At present, the export price of old air-dried ginger is 1200 US dollars/ton in FOB, and the foreign demand is not good."
When talking about the market expectations for the next few weeks, Zhang said, "Especially due to the reduction in production, farmers are reluctant to sell, resulting in high prices, but overseas demand is not large. I think in the short term exports will be relatively sluggish.”
Besides the ginger, grapefruit, garlic and lemon are also the main products exported by Jining Greenstream Fruit and Vegetable Co., Ltd.
More information:
Zhang Shuhan
Jining Greenstream Fruits & Vegetables Co. Ltd.
Wechat/whatsapp: 008615853798811
Email: [email protected]