Chinese ginger price not recovered since 2014 crash

“Ginger acreage in Shandong has remained stable compared to last year’s plantings. Therefore it is expected that total production volume will be similar to the 2015 harvest. At the moment, ginger export prices are slightly picking up. Prices are likely to remain stable throughout September and October,” according to Jason, export manager at Anqiu Tailai Foods.

Since 2014, prices for Chinese ginger have come down considerably, and have not recovered since. “In September 2014, the ginger price peaked at 15 Yuan per kilogram (equal to € 1.85, converted according to past 2014 Euro-Renminbi exchange rates). At the start of the new export season in the beginning of 2015, the price collapsed to 3.20 Yuan per kilogram. Since then, throughout 2014, price struggled to recover and reached 6.50 Yuan per kilogram at the highest”.

“In 2013, ginger had become a profitable crop for farmers. As a result, farmers in Shandong started to ramp up production for the next year. In addition, 2014 was a strong season with high ginger yields. By the end of 2014, prices for the 2013 ginger crop has increased so much that most buyers opted to wait for the new 2014 crop to arrive on the market. Once the new crop arrived, a bumper crop, caused prices to spiral down.”

Domestic ginger price developments March 2013 to August 2016. Prices peaked in the winter of 2014.

To see the graph in detail, click here

The price has not recovered since its drop in early 2014, and is likely to remain stable in the upcoming season. “In October, farmers will start to harvest the new crop. After that, I am not sure how the market will develop. It will take up to six weeks to dry the ginger and prepare it for export after the ginger has been harvested. The new crop will be ready for export by the end of December. Between the months of October and December, it is likely that the ginger price will rise. In these two months, only the old crop will be available for export as the new crop is not ready yet. At this point, there will be a lot of fresh supply, but the ginger packhouses will be fully occupied to process this.”

The company's ginger fields with renewed irrigation

To the left, fresh ginger laid out to dry.To the right, selection and packing of the 2015 ginger crop

Washing and packing of the 2015 ginger crop

Anqiu Tailai Foods grows ginger on 70 hectares near Anqiu in Shandong province. Annually, the company can harvest 5,000 tons of fresh ginger, which it dries and stores in its own packing house and storage facilities. Its main export markets are the UK, USA and Canada.

For more information:

Jason
Anqiu Tailai Foods Co.,Ltd
www.tailaifoods.com
Email: jason@tailaifoods.com
Address : Anqiu, Weifang City,Shandong,262100,China