June 1st, 2023 - Kuala Lumpur : FAMA observation has shown that, in comparison to May 1st, 2023, the wholesale price of imported ginger from China has jumped by 43%. The increase has affected the retail market to increase its price by 28%. Price trends for the wholesale and retail markets were more consistent in 2022, which led to increase of 67% in the wholesale market and 46% in the retail market for the same time period.
According to Whole Ginger Market Overview 2023 by Tridge, the production of ginger in China for 2023 is estimated to be 446.40 million metric tons (MT), which is 11.64% lower from the production in 2022. A number of causes have contributed to the drop in production, including:
Drought: China experienced a severe drought in 2022, which affected the growth of ginger plants;
Pests and diseases: Ginger plants are vulnerable to a variety of pests and diseases, which can result in diminished yield;
Increasing competition from other countries: China isn't the only main grower for ginger. The Chinese ginger producers now face more competition from Peru, India, and Nigeria, that grows ginger, largely, and at a lower cost.
Despite the decrease in production, China is still the third largest producer of ginger in the world, after India and Nigeria. The declining production of ginger in China is expected to lead to an increase in the price of ginger in the global market, mainly because China is a major supplier of ginger to the global market. Tridge reported, China contributes 45.2% of the net worldwide market value for ginger, followed by Netherlands and Peru, in year 2021. The increase in price is expected to benefit ginger producers in other countries, such as India and Nigeria.
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