Foreign demand for Chinese ginger is limited because the export price is too high
The price of ginger was rather high at the end of last season, which is why the price of ginger started higher than usual at the start of this season. At the same time, with the outbreak of the Covid-19 pandemic, distribution difficulties are numerous, in particular a shortage of sea containers, which is pushing up prices. That is why foreign importers are careful when ordering Chinese ginger.
This year, the volume of Chinese ginger exports is significantly lower than last year at the same period. In the first five months of this year, Chinese ginger export volume was 30% lower than in the first five months of last year. Even though the overseas markets are facing the pandemic and the number of orders is increasing, the increase in orders is still very small. This is only a small improvement over an otherwise difficult season.
“There is currently a lot of pressure on ginger exports. The volume of supply is too large. Chinese ginger growing areas have enjoyed a bountiful harvest this year, so the production volume is larger than last year. In addition, the volume in reserve is currently 15% more than at about the same time last year. In addition, foreign demand is weak. In other words, supply exceeds demand, and that is why ginger exports are under great pressure. This is according to Mr. Cao Shuming from the Shandong Anqiu Yiming Fresh Ginger Processing Plant.
China is one of the biggest producers and exporters of ginger. Most of the exported ginger comes from the production areas of Shandong. According to Mr. Cao: “The volume of exports in May 2021 decreased by about 45% compared to May 2020. This shows how severe the contraction of ginger exports is this year. As for the price, the export price should remain. high for the foreseeable future. And that will undoubtedly have an impact on the next ginger crop.
Ginger is not a necessity and can be easily replaced with other agricultural products. When the price is too high, foreign consumers simply consume less ginger. Plus, the summer months are slow months for the ginger industry. This is why Chinese ginger exports have declined considerably.
For more information:
Mr. Cao Shuming
Shandong Anqiu Yiming Fresh Ginger Processing Plant
Phone. : +86 159 5449 8966
Email: [email protected]