Over the last two years fresh ginger prices have been continuously high. Last year prices peaked at 10 Yuan per 0.5 kilo. Ginger farmers believed market prices remained high this year and expanded their growing areas. The output grew substantially, leading to an oversupply. Most of the prices dropped to 1.5 Yuan per 0.5 kilo, not a fifth of last year's prices.
Starting from 2000, fresh ginger prices went up from 7 Yuan to 8 Yuan per 0.5 kilo. During last year's peak season prices climbed up to 15 Yuan per 0.5 kilo. With 4.5 Yuan per 0.5 kilo, this year's market price is no good. The increase of growing areas has a crucial influence on the prices.
Price inflation in 2010 led to more ginger farmers. Growing areas increased in 2011, causing prices to drop in 2012. The constant rise of ginger prices in 2013 and 2014 led farmers to be generally optimistic again, leading to a repeated expansion of their growing areas. Up to April this year, growing areas increased by 30% compared to last year.
Although prices climbed up in April this year, the market will enter a depression after new ginger enters the market. At this moment the price for the best ginger variety is approximately 2 Yuan per 0.5 kilo. The majority of prices lay between 1.4 Yuan to 1.5 Yuan per 0.5 kilo. Jinan City Bureau of Commerce monitoring data shows that the retail price of new ginger entering the market is 4.95 Yuan per kilo, a price decline of 37% compared with last months prices of 7.9 Yuan per kilo. In the same period last year, fresh ginger retail prices reached up to 19.25 Yuan per kilo. Prices dropped 74.3% the same period this year.
