Over the past two years, ginger prices rose substantially, causing more ginger farmers to get excited. This year, a lot of farmers expanded their acreage. The ginger output increased, creating an oversupply on the market. The introduction of new fresh ginger varieties in local regions also led to an increase of growing areas. Climate circumstances and the fact that farmers were reluctant to sell is also not without influence.
That ginger prices are fluctuating is a normal phenomenon, it is part of a five-year cycle. About 40% of the ginger from Weifang (Shandong) is used for export, the surplus is sold on the domestic market. In Weifang ginger growing areas have alse expanded over the last two years. At the same time, growing areas in Brazil, Peru and Thailand also increased. This also influences the price of ginger.
Source: Qilu Evening News