Overall Chinese Ginger Export Prices and Value Remains Low during 2021

Whole Ginger

China

Market & Price Trends

Published Dec 15, 2021

As China walks into the ginger export season, there is a large supply of ginger in the market and not enough export demand resulting in a fall in prices. The annual exports value continues to decline even as 2021 comes to an end due to high freight costs and the impact of recurrence of the pandemic. During the first nine months of 2021, China’s ginger exports in the first nine months of 2021 were 13% less than last year’s figure despite the lower export prices. There is a hope that increases in demand for ginger in the Chinese market to prepare for Spring Festival which will revive the market and increase the profitability for the producers and traders by offering better prices.

Chinese ginger harvesting season came to an end by late October and early November this year with large volumes of ginger in the market. As of the second week of December, the ginger supply in the market is very strong but not all of it is ready for export. Some of the ginger pieces have not been cured properly making them very tender which is an undesirable characteristic for exports across long distances. In general, in 2021, China’s ginger exports struggled with low prices, high freight costs, and the impact of the COVID -19 pandemic across the world.

China’s ginger exports during the first nine months of 2021 (January to September) were worth USD 440 million which is 13% less than the same period last year, USD 505 million during the same period. Even though the domestic ginger supply was sufficient and the export price remained low, there was no significant increase in the export volumes. Although China’s export unit value was significantly lower than other ginger exporting countries like Thailand and Netherlands, the value of ginger exports fell. The increase in the volume of exports due to lower prices was not enough to offset the impact of fallen export unit value.

Source: ITC Trade Map. HS Code: 091011 Ginger, neither crushed nor ground

China exported 39,700 tons of untreated ginger in October 2021 worth USD 36.88 million. Even though the export volume increased by 41.01% compared to October 2020, the export value declined by 34.20% compared to the same period and the average export price dropped by 53.33%. Similarly, China’s processed ginger export volume in October 2021, increased by 7.36% compared to last year but the export value dropped by 7.84%. The shipping costs continued to remain high and unreliable due to a shortage of containers in different ports across the world.

The ginger export prices from China were lower throughout the year as production volume expanded this year. The supply volume is huge and market demand is weak which further pushed down the export prices. As the world prepares for Christmas and New Year's Eve, it is expected that the ginger exports will come back to usual levels in the coming weeks. Further, there is a hope that an increase in demand for ginger in the Chinese market to prepare for Spring Festival (1st February 2022) will revive the prices and increase the profitability for the producers and traders in the domestic market.