Ningxia: Witness The Growth Of “Chinese Good Goji Berry”

Six in the morning, the Zhongning international Goji berry trade center which is located in Ningxia Zhongning county has been crowded, thousands of traders across the country come here, just to buy the best quality of goji berry from origin.

“Modern people pay more and more attention to health, and goji berry is a traditional Chinese health care product.” Here you can buy Ningxia goji berry, so I’m far from here, but also come to buy.” From Chongqing dried fruit merchant Li Rongjiang, every year he comes to Ningxia during the Ningxia goji berry ripening period.

Covers an area of 1300 acres of Zhongning goji berry international trading center, composed of A and B region, the A region is the Ningxia goji berry trading area, B region is the trading area of Gansu, Qinghai, Xinjiang, Inner Mongolia and other producers. Here is not only China’s largest goji berry trading center, but also become the national goji berry prices “drogue”. In 2016, 120 thousand tons of goji berry were traded in the trading center, amounting to $800 million.

According to Xu Shengcai, the head of the office of the trade center, Ningxia goji berry concentrated market in June and July, then the trading began to enter the peak season, day trading volume can reach more than 800 tons.

Good quality is what is recognized by the market. There are currently 51 processing enterprises of goji berry in the county, and 17 export enterprises. There are more than 40 kinds of products of deep processing of goji berry, products are exported to Europe, Southeast Asia and other more than 40 countries and regions, exports accounted for 40% of China.

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Analysis of Chinese goji berry export

In 2016, China’s Goji berry export volume was 12613 tons, an increase of 28.72%; export price of $8.71/kg, down 20.68%; exports amounted to 110 million US dollars, an increase of 2.1%.

2001-2003 years, China’s exports of goji berry generally maintained at about 5500 tons, the average export price was US $1200/ton. With the efficient culture technology of the main producing areas in Ningxia continues to mature, the Chinese goji berry production base scale gradually began to reflect, goji berry export prices also began to break through $1200/ton limit. With rising prices, export volume fell in 2004, during the period of 2004-2008, Chinese goji berry export volume has been less than 5000 tons. But in the 2004-2008 year period, the overall export price of Chinese goji berry has continued to rise. Besides the reduction of natural disasters and the increase of planting costs, the market demand for Chinese goji berry has also been increasing year by year. In addition, the improvement of varieties and standardization of production has also greatly enhanced the export competitiveness of Chinese goji berry products. 2009-2014 years, exports of Chinese goji berry products were in a rising trend. And 2013-2016 years, export prices and quantity were at an all-time high.

From the point of view of exports, Asia and Europe have been the main areas of Chinese goji berry exports. In 2016, China’s goji berry exports to Asia accounted for 50.78% of total exports, and exports to Europe accounted for 32.59% of total exports.

In recent years, with the understanding of consumers in Europe, America and the world, the goji berry has gradually entered the mainstream Western society from the traditional Chinese market. Its unique and rich nutrition and health care efficacy has been gradually confirmed and recognized in western countries. It is called “super food” in Western countries. Holland has been the largest market for Chinese goji berry to export to Europe. In supermarkets in the UK, goji berry is sold as berry food and sold with blueberries, raspberries and so on. It sells well and has great potential. But the goji berry in the UK retail price is not low. In Britain’s biggest supermarket TESCO, A bag of 250 grams of Chinese goji berry sells for 8.99 pounds. British love tea, and some people put goji berry in their afternoon tea. In addition, they also like to add goji berry in the stew of chicken or lamb. Today, there are over 30 varieties of Chinese goji berry products in the European market, ranging from fruit juice to soft sweets, and the usage has been no different from that in China. In the current healthy food market in the United States, Chinese goji berry health drinks are becoming more and more popular, and the United States has become the world’s third largest market for Chinese goji berry exports.

Ningxia is the origin of Chinese goji berry, thanks to the unique geographical, climatic and environmental factors in the region, the quality of goji berry is far superior to other areas, and the export of goji berry often ranks first in all provinces of China. 2016 exports ranked second to fifth respectively: Shandong, Anhui, Hunan and Qinghai.

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Recent Decline in Prices of Chinese Goji Berry

Recently, the main producing areas of Chinese goji berry have been listed. Although this year’s harvest of goji berry, but many growers are not happy.

In Ningxia, the Chinese goji berry is weighed and then washed and dried. Then it becomes our common dry fruit, which goes to the whole country and even the world. Wolfberry growers Zhao Feng told the author, with the technology more and more advanced, the current wolfberry from picking to transportation is also more and more convenient. “At the moment, I’ve felt the need for new breakthroughs, and the next step is to raise some money, buy dry and packaging equipment, build my own brand, and sell my own wolfberry.” Zhao Feng admits.

It is reported that the China wolfberry planting range more and more wide, larger output has six major areas, respectively in Zhongning county of Ningxia, Jinghe County of Xinjiang, Golmud city of Qinghai, Inner Mongolia wulateqianqi, Jingyuan County of Gansu, Julu County of Hebei.

This year, the Chinese goji berry belongs to the full fruit period, and most of the regions are expected to have a bumper harvest. But from consumer demand, the summer does not belong to the demand season, so the market demand is weak.

At present, the weather is hot, Chinese herbal medicine in the traditional off-season. On the one hand, businesses will not bulk stock; on the other hand, the season is not nourishing, terminal demand is weak. Prices are expected to change slightly before August. As for the autumn and winter season this year, oversupply is more serious, Businesses sell more difficult.

The average annual demand for Chinese goji berry is about 200 thousand tons. According to rough statistics, in the past two years, only Ningxia, Xinjiang, Gansu and other major producing areas in the production of about 250 thousand tons, the supply of surplus is still serious.

For these, we think that farmers need to pay close attention to the dynamic market supply and demand, do not blindly follow the trend of expanding. Oversupply and declining profits are indisputable. Farmers should achieve scientific and standardized management, minimize costs, improve product quality and increase competitive advantage. By means of scientific innovation, it extends to the deep processing field, produces high value-added products, and broadens the sales channels.

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Forecast Of Price Quotations Of China 2017 NEW Dried Bulk Goji Berry Market 

1.Marketing situation

The production of goji berry in 2017 that was two or three times more than that in 2016 has been basically clear and there is an indisputable fact that output is higher than sales.  But the outlook is not optimistic in the future.

The price of goji berry was below 4.41 dollars per kilogram before 2010 (as for unclassified goods). And the planting area of goji berry is stable. It was not until 2011 that goji berry, which had been silent for many years, broke the price of $5.89 per kilogram in a short time. Since 2011, goji berry has been planted in succession in many places. The goji berries of which the planting areas were doubled from 2011 to 2012 have basically reached the “full fruit” period in 2016.

In 2014, with an outburst in goji berry market, the price was as high as $8.83 per kilogram, and the enthusiasm of farmers were aroused. The goji berries planted after 2014 will reach the “full fruit” period from 2017 to 2018.

A conservative estimate of total output of goji berry is more than 250 thousand tons in 2017. In recent years, with the increasing demand for goji berry, the average demand is about 18-20 tons per year. There are rest 50 thousand tons from 2016 and most plants whose production can not be underestimated will reach the “full fruit” period from 2017 to 2018. Various areas of businesses said that there are still some farmers expanding the planting areas continuously this year.

According to the total output of 250 thousand tons and average yield per mu of 250 kilograms this year, there are more than 1 million mu of planting area in China. And the planting area didn’t change too much in Ningxia, Hebei or Gansu, but it was increased obviously in Xinjiang, Qinghai and Inner Mongolia.

Many businesses reflected that, this year, the profit of every mu of goji berry will decline continuously, but farmers can still obtain much with the price at present, they will not give up cultivating in areas with fewer alternatives and they will continue expanding before the price is lower than the cost.

For example, in Gansu Jingyuan County, in 2015, the local farmers earned about 3 thousand dollars per mu at the best. The gross profit was high to 1500 dollars per mu in stagnant 2016. As for local farmers, cultivating goji berries is a profitable project.

And as for Xinjiang Jinghe County, the planting area which was about 125 thousand mu in 2015 was expanded to 175 thousand mu in 2016. In this expansion rate, the yield in Jinghe county will increase 1.2-1.3 tons every year.

2.Prices forecast of goji berry in 2017

Over the past few years, goji berry market has grown worse with overcapacity, and lower prices. It is estimated that the price of new goji berry in 2017 will be as follows:

Initial stage of listing: as for Ningxia goji berry (unassorted), the price will be 6.00-7.00 dollars in different qualities; the price of Qinghai goji berry will be 6.00-7.00  dollars; the price of Xinjiang goji berry will be 5.00-6.00 dollars; the price of Gansu goji berry will be 5.15-6.20 dollars; the price of Inner Mongolia goji berry will be about 6.20 dollars.

Later stage of listing: as for Ningxia goji berry (unassorted), the price will be 4.70-6.80 dollars in different qualities; the price of Qinghai goji berry will be 4.70-6.50  dollars; the price of Xinjiang goji berry will be about 4.5 dollars; the price of Inner Mongolia goji berry will be 4.50-4.60 dollars.

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High quality

To eliminate inferior varieties and backward technology, to earn money with good qualities.

Low cost

To reduce costs and enhance market competitiveness, large scale andintensive management will bring economic benefits.

Marketization

To develop goji berry market by setting up market concept, positioning sales area, and producing marketable products.

Multi variety

According to the market demand and consumer requirements, goji berries should be produced with multi species, multi specification, small amout, large-scale strategy to meet the multi-level consumer demand.

Anti seasonal

There are three main ways of anti season supply: facility planting will make goji berry list ahead of time; the development of goji berries of different seasons; to come into the market in different  seasons.

Fresh processing

To research fresh fruit storage and preservation technology, to promote the sales and enrich the consumption of goji berries.

Specialty

To do a good job in developing local goji berries, enriching types of products, and seizing market with special, excellent products.

Processing

To develop deep processing of goji berries, increase the values. Processing isthe new trend of the world’s agricultural development.

Standardization

To improve the standards in the preproduction, production and after the production, to form a standardized system for goji berries and create brands.

Branding

To enhance the grades and create the brand with good qualities; to do a good job in packaging and establish the brand with all aspects; to registertrademark and create brand with fame; to improve publicity and create brand with momentum.

In order to selling well of goji berries, people should identify the needs of the market, the changes of needs of the market require people to change thevarieties, methods, and marketing strategies. In this way, people can face the changing market, improve efficiency and avoid the loss of money.

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With the downturn of goji berry market, how to make their goji berries more competitive or sell a good price become the most concerned problems. Since last year, goji berries are difficult to be sold out with yield but no harvest, sometimes people can not recoup costs, and how to solve these problems has become the focus of businessmen. Today, we are talking about the reasons for difficulties in sales and new changes in the market, and providingmarketing strategies to goji berry businessmen. Here are the 3 reasons for sales difficulties of goji berry:

• The characteristics of fresh goji berries

The biggest difference between goji berry and other products is storage period. Goji berries are easy to deteriorate after placed for a long time, the prices will be influenced with the change of goji berries qualities, especially in the south, goji berries easily get damp. Therefore, these goji berries need to be sold in time or the interests of businessmen will be damaded.

• The single sales channel

Decentralized management is also a factor of sales difficulties. Goji berries arebasically sold by vendors. Some businessmen realized that narrow marketing will easily cause goji berries unsalable, they established cooperatives, focusedon production and sales, and expanded sales channels.

• Follow the fashion of planting

Information asymmetry and following the trend of planting are the key reasons of sales difficulties. Many people swarmed to plant goji berries because of the good market of goji berry, which caused a serious imbalance between supply and demand in the coming year, farmers who expanded the planting fields lost money, and new farmers sold at a loss, then they began to decrease the plants, which caused the reduction of market supply and the raise of price, and people always move in this circle.

3 changes in market demand

On China Agricultural Mechanization Forum in 2016, Chen Liangbiao, a deputy director of rural economic research center of Ministry of Agriculture,mentioned that our agricultural products showed the changes of miniaturization, specialization and refinement.

• Miniaturization

Consumers demand for goji berries with a miniaturization trend, which is mainly determined by the consumption characteristics. Adults take 5 -10 grams goji berries everyday, in this way, goji berries will not be taken too much in a month, and they will easy to get damp if kept in a common way.Most goji berries packed into a bag with 500-1000 grams, which will be a great influence on applicability.

• Specialization

Specialization is a synonym of quality improvement. With the increasingstandard of living, people have increasing demands for high quality and diversity of food. Consumers have strict demands for goji berries, consumption experience will be reduced if origin of goji berries is not right,different areas should develop their own characteristics and goji berry culture.

Specialty reflects the transformation of current consumer demand fromquantity to quality, people require to good, healthy, and safe eating.Therefore, green products, pollution-free products, organic products and a variety of functional products have larger market.

This determines goji berries should be high-quality products.          

• Refinement

Refinement is an extension of specialization, excellent quality and exquisite packaging can be the icing on goji berry products. Consumers pay more attention on shape, color and taste of fruits. Therefore, exquisite packaging can also increase the price of agricultural products.

The price of  common goji berries sold in supermarket grows several times because of the exquisite packaging.

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