“The price of ginger in China increased in April, which affected market demand.”

Since the beginning of April, ginger prices in China have increased significantly. The cost of raw materials increased from 5.4 yen/kg to 9.4 yen/kg in two weeks, an increase of more than 70%. Although prices have stabilized recently, they continue to experience slight fluctuations.

Ye Qiaowei from Fujian Xianxianhui Trading Co. Ltd, a company specializing in domestic and international trading of ginger, attributed the rise in prices to several factors. “One of them is low yields and limited supplies of last year’s harvest. Six months before the new harvest, about 60% of available stocks have already been sold in the northern production regions. This shortage caused prices to rise. In addition, market speculation plays a role. Given the high procurement prices late last year, the current favorable market conditions have led to the premature release of ginger stocks, resulting in market fluctuations. »

The price increase had a negative impact on sales. In the domestic market, they fell below last year’s levels, and although exports have improved slightly, the imminent arrival of Brazilian and Peruvian ginger in June is expected to reduce demand for Chinese ginger worldwide. “If high prices continue, it will be difficult to meet market demand,” Qiaowei said.

He cites the European market as an example: the price of a box of ginger weighing 13 kg in Europe has increased from 19 to 25 euros, which is difficult for buyers to accept.

Looking ahead, Qiaowei believes ginger prices could either fall in September as farmers sell off their stocks in preparation for the new harvest, or experience a new surge in July-August if a quick sell-off depletes stocks. “The short-term trajectory of the market remains uncertain due to varying forecasts. »

From a strategic perspective, he said, to reduce risk, his company plans to sell existing inventory and subsequently accept orders only at agreed prices to ensure delivery.

In addition, Qiaowei provides insight into the trends of ginger cultivation. “Brazil is expanding its planting area and the new season’s harvest is showing promising quality, strengthening its competitive advantage. For its part, China began increasing its planting area last year and production is expected to increase in the coming years. »

Currently, the market sells not only northern ginger stocks, but also Guangxi white ginger and Yunnan turmeric.

For more information:
Ye Qiaowei
Fujian Xinshenghui Trading Co., Ltd.
Such. : +86 18760699693