Since November, the purchase price of domestic ginger has fallen sharply. Many producing areas offer ginger less than 1 yuan, some even only 0.5 yuan / kg, and there is a large-scale backlog. Last year, ginger from the origin could be sold for 4-5 yuan / kg, and the terminal sales even rushed to 8-10 yuan / kg. Compared with the purchase price in the same period of two years, the decline has nearly reached 90%. This year, the land purchase price of ginger has reached the lowest point in recent years.
Before the listing of new ginger, the price of ginger has remained stable this year. However, after the listing of new ginger, the price has been falling. The old ginger has been falling from the initial 4 yuan / kg, to 0.8 yuan / kg in some places, and even lower in some places. The lowest price of newly harvested ginger is 0.5 yuan / kg. In the main ginger producing areas, the price of new ginger is based on quality, ranging from 0.5 to 1 yuan / kg, the price of inferior goods ranging from 1 to 1.4 yuan / kg, the general price ranging from 1.5 to 1.6 yuan / kg, the price of mainstream washed ginger ranging from 1.7 to 2.1 yuan / kg, and the price of fine washed ginger ranging from 2.5 to 3 yuan / kg. From the national average price, the current average price is only 2.4 yuan / kg.
In the ginger planting base in Changyi City, Shandong Province, it takes more than 1000 kg of ginger to plant one mu of ginger. According to the price at the beginning of this year, it will cost about 5000 yuan. Scaffolding, plastic sheeting, pesticides and chemical fertilizers need nearly 10000 yuan. If it is cultivated on circulating land, it also needs a circulation fee of about 1500 yuan, plus the labor cost of sowing and harvesting, the cost per mu is about 20000 yuan. If calculated according to the output of 15000 kg / mu, the principal will be guaranteed only if the purchase price reaches 1.3 yuan / kg. If it is lower than 1.3 yuan / kg, the planter will lose money.
The fundamental reason why there is such a big gap between this year’s ginger price and last year is that supply exceeds demand. As ginger was in short supply and the price soared in previous years, farmers expanded ginger planting in a large area. The industry predicts that the planting area of ginger in China will be 4.66 million mu in 2020, with a year-on-year increase of 9.4%, reaching the historical maximum; In 2021, China’s Ginger output was 11.9 million tons, a year-on-year increase of 19.6%.
The price of ginger fluctuates greatly because of its high yield and easy to be affected by the weather. If the year is good, the profit per mu will be very considerable. Due to the gratifying price of ginger in the same period last year, many growers have increased their ginger cultivation this year. Moreover, when ginger was just planted in the early stage, several strong winds and low temperatures were encountered, which were not conducive to the sprouting of ginger. Some ginger farmers were very optimistic about the market of ginger. In particular, the continuous high temperature and dry weather in summer, coupled with several continuous heavy rains in autumn, made Jiang Nong firmly believe in the good market of ginger this year. When ginger was harvested, ginger farmers were generally reluctant to sell, waiting for the price to rise as much as last year, and many traders also hoarded a large amount of ginger. However, after November, after the collective excavation of ginger from the origin, a large number of ginger poured into the market, and the market price fell rapidly.
Another reason for the price decline is the continuous rainfall in the main producing areas in the past month, which creates an opportunity for the price rise of many vegetables, but it also leads to the accumulated water in the ginger cellar of some growers, so they can’t store ginger. The enterprise cold storage also tends to be saturated, so the fresh ginger on the market shows a surplus trend, further aggravating the price decline. At the same time, the decline in exports has also led to more fierce competition in the domestic market. Affected by freight and foreign epidemic, the export amount of ginger from January to September was US $440 million, down 15% from US $505 million in the same period last year.
Post time: Nov-24-2021