China: New supplies of ginger could bring down prices

Prices for ginger in China have risen dramatically over the course of this year. But with the 2014 harvest about to increase supplies, those prices could come down in the coming weeks.

“This month, the ginger market reached its highest point in two years,” noted Jason Jiang, sales manager for Qingdao Renhe Ginger Industry. “Though the price for ginger is still in a very high position, it will go down because new-season ginger will go to the market.”

The price for ginger has been steadily climbing since February of this year. But with the new harvest underway, buyers will see a bit of relief in the coming days. The highest price the market reached was 16.00 RMB per kilogram, though it's not likely that will be reached again any time soon. Currently, Qingdao Renhe Ginger Industry exports about 5,000 annual tons of their ginger, which is grown in Changyi, to Holland, the United Kingdom, Italy, Spain, France, Russia, Canada and the United States.

They're selling it to wholesalers and supermarkets at prices that range between $3,000 per ton and $4,000 per ton. Some buyers have curtailed their orders as prices got higher, but the expected dip in prices could lure them back. “In order to deal with prices, we suggested that our clients change the size of the ginger they order,” said Jiang. “So if they were ordering 200 gram sizes, we suggested they order 150 gram sizes. But the yields from the new season will increase a lot, so high prices will not stay too long.”

For more information:
Jason Jiang
Qingdao Renhe Ginger Industry Development Co.
Tel: +86-532-8539 0027

Author: Yzza Ibrahim / Carlos Nunez

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