Chinese Ginger Exports Recover from Temporary Shutdown

With ginger sourced mainly from Shandong and sold predominantly in the US market, supplier Kaymile Trading explains how prices are continuing to see fluctuations even as production goes back to normal. Shandong is the top export market for ginger in China, the largest exporter of ginger in the world, that occupies 47% of the worldwide export share.

Exports Back to Normal

After experiencing a shortage of supplies for the first two months of 2020 from lockdowns, ginger sourcing from China has almost recovered to its pre-coronavirus state. While demand was exceptionally high in early 2020 as word spread of ginger’s medical properties, it has since settled down.

Prices on a Fluctuating Trend

According to Kaymile Trading, approximately 85-90% of the ginger consumed in the US is imported from China, thus making the US market heavily dependent on the production situation in China.

According to Tridge data, ginger prices in China have been fluctuating and rising from the end of April, while US prices have been on a general decreasing trend from mid-May, and are still on a fluctuating trend.

During the shortage in early 2020, ginger in the US was sold for up to USD 40 for a 30-pound box, which after that went down to approximately USD 12 - 13 per 30-pound box, before recently rising back to USD 20 per box, explains Kaymile Trading. Ironically, the quote recently requested by Chinese manufacturers was USD 30, higher than the end consumption price in the US, signaling the unusual shift in market prices.

While the factors causing this trend are not entirely clear, it is thought to be contributed by lower production in 2019 combined with the huge demand increase in early 2020. In addition, the fact that major South American exporters Brazil and Peru are currently in the low season has also contributed to the fluctuations in pricing.

Market Trends for 2020

Due to the pandemic, traders have also seen a shift in consumption channels from manufacturers, much of it toward ginger ale, to retailers such as grocery stores, as well as other wholesalers.

The situation has also compelled new importers unfamiliar with the Chinese ginger market to purchase ginger at erratic prices. In light of increasing prices in China, established suppliers such as Kaymile Trading help ensure stable supply and determine adequate prices for the US market.