Market price for wasabi forecast to grow approximately 10%
"Another characteristic product of ours is wasabi. The growth of wasabi is severely limited by geographical conditions: it needs to be grown between 1300 - 2500 meters above sea level, the air temperature needs to lie between 8-20 degrees in the region, and on top of that wasabi is vulnerable to changing weather conditions, plant diseases and insect pests. Therefore, the supply of wasabi on the market is limited, although demand is rather big. In comparison to the same period last year, the market price this year will go up by approximately 10%. Our company's wasabi plantations are situated in the high mountains in Yunnan province at about 1500 meters above sea level. Most of our goods are sold domestically or in Japan. In the past two years we have started selling in Italy, Spain and the United Kingdom in Europe, and we even exported to the United States of America," says mister Peter Zheng, manager of the international market department at the Artisan Foods corporation in Shandong province.
Big difference in consumer preferences for wasabi between Japan, Europe or USA
"I have an optimistic view on the international market for wasabi, because it is a typical ingredient for Japanese cuisine and is thus well-received on the international market. In comparison to consumers in the Japanese market, consumers in Europe or the United States prefer wasabi varieties that have a slightly more spicy taste but which are sold at a rather inexpensive price. In order to cater to the needs of these consumers in Europe and the USA, we are adjusting our cultivation methods of all our kinds of wasabi. In addition, we are also actively looking for a partnership with a suitable supermarket in the European and US market. We also hope to extend our ginger and garlic product lines into Europe."
Expectations of changes in the market price of garlic in 2017
"In recent years the market price for garlic has continously been rising at high speed. There mainly are two reasons for this. First of all, the harmful cold weather has led to a large-scale reduction in output. Secondly, because garlic can be easily stored, the market price for garlic has been artificially fixed. In current circumstances, the market price for garlic has started to show a falling trend. It is forecast that its position on the market will move in 2017. Its price will probably only be at 60-70% of the price in 2016."
Current situation of ginger supply exceeding demand is hard to change in the short run
"The market price for fresh ginger, on the other hand, has been depressed recently for a number of reasons. The high prices in 2014 and 2015 caused a boom in ginger plantations in China, but the demand for fresh ginger actually did not grow on the international market. Plus other production areas like South America and India have also been growing. This has all contributed to a global supply that far exceeds demand. The price for ginger and garlic has significantly fallen in the wake of these events."
"We are a family business that processes new products of ginger, garlic and wasabi. Under the private label 'Artisan Foods' we started exporting our ginger, garlic and wasabi to Japan through the port in Qingdao in 1998. In recent years we have progressively been expanding into European countries and Australia. Exports of ginger and garlic to Japan exceed 30,000 tons. We hold 30% of the market share in the Japanese market. We have production areas of approximately 467 hectares, 667 hectares and 6.7 hectares that allow us to grow garlic, ginger and wasabi. We also run 7 factories, of which 3 are situated in Weifang city (Shandong province), Anqiu city (Shandong) and Shanghai, and 4 others in Japan."
