China: 10% more fresh ginger

"The total quantity of fresh ginger has grown by 10% in 2016 compared to 2015. In view of this situation, the price during the ginger harvesting period is at 1.6 RMB per kg. Because of the high price for old ginger and fried ginger, the buying price rose to 3.2 RMB per kg. Afterwards, it fell back to 2.2 RMB per kg. This demonstrates that the ginger market slackened near the end of the period," says Mr. Hanson from Wangjia Fruit and Vegetables in Anqiu.

High export pressure
"The extra 10% that was produced this year is mainly derived from the influence of dried ginger. The stocks of farmers have remained nearly undiminished. The demand for ginger in China has been satisfied for this year. Apart from export to Europe, Japan, other rich regions and China, it is also necessary to sell to the low-wage countries of the Middle East and Southeast Asia in order to stimulate the market. But the ginger price low-wage countries can afford is around 2 RMB per kg. If the price exceeds this limit, the Chinese ginger won't have a price advantage compared to other countries that export ginger, such as Brazil, India and Thailand."

Gloomy market trends
"Judging from the current situation, the market doesn't look good. At present, 16 years ginger 'from the cellar' is influenced by 15 years turmeric. (16 year ginger is called that because the ginger needs to go in cold storage or a cellar after harvest for at least a month. This process helps to rot the remaining upper part of the sprout, which otherwise would harm the ginger during transport.) The price for the ginger isn't low and the opening price for fresh ginger is at 3.1 RMB per kg. This is the peak price for fresh ginger in 2016. The market has to move towards an equilibrium. It is estimated that the fresh ginger price will gradually go down under the pressure of the market demand. The lowest price may well fall down to around 1.6 RMB per kg."

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