This has resulted in large-scale accumulation of unsold ginger stock. Last year, ginger farms were able to sell their produce for 4–5 yuan ($0.63–0.79) per jin, with prices at the final point of sale reaching 8–10 yuan ($1.26–1.57) per jin. Compared to last year, ginger prices have already dropped by almost 90% this season, hitting their lowest point in several years.
Prior to the new season’s ginger entering the market, this year’s prices were holding firm, but since the new ginger became available they have been steadily falling. Prices for last season’s ginger have dropped from 4 yuan ($0.63) per jin to just 0.8 yuan ($0.13) per jin in some regions and even lower in others. Prices for newly harvested ginger have fallen even lower, to as little as 0.5 yuan ($0.08) per jin.
Within the major ginger-growing regions, current prices vary according to the grade of the goods; the lowest grade of ginger is selling for 0.5–1 yuan ($0.08–0.16) per jin, inferior-quality ginger for 1–1.4 yuan ($0.16–0.22), ordinary-quality ginger for 1.5–1.6 yuan ($0.24–0.25), standard-quality washed ginger for 1.7–2.1 yuan ($0.27–0.33) and premium washed ginger for 2.5–3 yuan ($0.39–0.47). The national average ginger price is currently sitting at just 2.4 yuan ($0.38) per jin.
According to calculations for the growing region of Changyi in Shandong province, growers need to receive a price of at least 1.3 yuan ($0.20) per jin to recoup their costs, including seed pieces, equipment, labor and so on. If the price falls below 1.3 yuan per jin, growers will face a loss on the sale.
This year’s sharp drop in fresh ginger prices is essentially attributable to supply outstripping demand. Over the past few years, fresh ginger supply was unable to meet market demand, which drove prices up and prompted farmers to significantly expand their ginger growing area. Industry insiders predict that China’s total land area dedicated to ginger production in 2021 will surpass last year’s 4.66 million mu (311,000 hectares), which represented a 9.4% year-on-year increase and an all-time high. Ginger production volume for 2021 is forecast to reach 11.9 million metric tons, a 19.6% increase over last year.
Ginger is a high-yield crop but one that is highly susceptible to weather changes, which means that prices can fluctuate considerably. In a good year, ginger crops bring in a substantial profit. In addition to many growers increasing their output this year owing to last year’s attractive prices, this year’s crop was subject to several spells of high winds and cold weather immediately after planting, which is detrimental for growth. Earlier this year, many ginger growers were optimistic about this season’s prices, especially considering the added impact of the hot, dry weather in the summer months and repeated heavy rains in the fall. Thus, when the harvest season arrived, growers were hesitant to start selling their crops, waiting for a large price surge like last year’s, and many merchants were also sitting on large reserves. However, in November, when the new season’s ginger crops were harvested and fresh stock flooded the market, prices instead took a steep dive.
Another factor behind the drop in prices was the repeated heavy rains that fell in China’s main ginger-growing region over the past month. Although this provided the potential for price increases for many vegetable varieties, it also led to the flooding of numerous storehouses. Commercial cold storage facilities were also largely saturated with stock, leading to an oversupply of fresh ginger and driving down prices even further. At the same time, exports have declined, heightening competition on China’s domestic ginger market. Owing to high freight costs and the impact of the pandemic, China’s ginger exports from January to September 2021 only reached a value of $440 million, a 13% decrease from last year’s figure of $505 million over the same period.
Despite the disruptions brought on by Brexit and the pandemic, the UK imported more South African grown pears and apples this year, according to data from Hortgro, South Africa's deciduous fruit grower organisation.
The UK's official exit out of the European Union at the start of the year has led to a plunge in exports and imports, leading to price spikes for some critical commodities. The world also continues to grapple with logistical challenges brought on by the pandemic-led global supply constraints.
Overall, South African apple and pear exports rose 9% in 2021, with 33 million cartons of apples and 15.5 million cartons of pears shipped across the globe.
But with 6.1 million apples exported to the UK this year it was the third-largest single export destination for apples from South Africa. Apples shipped to the UK accounted for 19% of South Africa's total exports.
Jacques du Preez, Hortgro's general manager for trade and markets, said, despite logistical problems at ports and global disruption of logistical chains, South African pome fruit growers were able to display their agility to adapt to strenuous conditions.
"They still managed to deliver a phenomenal harvest — surpassing all expectations," Du Preez said.
South Africa's apples and pears also come into season during a crucial time when the fruit is off-season in the European region.
Hortgro is now marketing South African stone fruit in the UK, which came into season this month. The association's stone fruit UK campaign aims to highlight South African produce's leading quality and sustainability.
"It also promotes agriculture as a force for good in South Africa, where the deciduous fruit industry is key for job creation and contributes substantially to social welfare programmes in rural areas — thereby creating stability within the national context of high unemployment rates," Hortgro said.
