There's a greater supply of Brazilian ginger this season compared to last year. "Last year there was lower production and higher prices," says Frederico Stuhr of Pommer Fresh Foods. "It was a good season for the growers because of that, so people grew more this season. The weather conditions in Brazil were also very favorable. We had a good amount of rain and perfectly balanced weather."
Pommer began its season on time out of Brazil and it's just receiving its first containers in the U.S. this week. However, across the industry, some shippers began earlier. "What we're seeing with the earlier start is that these arrivals weren't in good condition. The ginger was too young," says Pommer's Apanatche Bark.
Following the late June-early July start to Brazil's season, it then ships until December.
More from Peru too
Along with Brazil, Peru is also shipping an ample supply of ginger to the U.S. this season. "Their season just started with mature ginger," says Bark, adding that Peru is shipping more volume than Brazil. China is also steadily shipping ginger to the U.S.
While last year's demand felt stronger given the tighter supply from Brazil, this season's demand does look stable and balanced with supply from the country. Stuhr also adds that the market is gaining familiarity with those who work within the industry. Still, the industry is seeing new players coming in. "It's one of the biggest challenges," he says. "Especially in Brazil, companies who export other types of commodities are jumping into the ginger business without a lot of experience. It can make a mess on the buying side." The industry has seen a number of new players ever since the start of the pandemic when demand for ginger started strengthening thanks to the health halo associated with it.
Looking ahead, greater volume is anticipated from Brazil until September when the supply comes down somewhat and pricing may strengthen then too. "Right now, with high offers from Peru and China and Brazil with steady supply, I think the price will be steady," says Bark. "Those in the industry do have a sense of responsibility with the product with sales and not shipping too much and maintaining the quality so I don't think the price will change much."
However, air shipments of ginger are still happening which could impact pricing.
For more information:
Apanatche Bark
Pommer Comercio Internacional Ltda
[email protected]
Frederico Stuhr
Pommer Comercio Internacional Ltda
[email protected]
www.pommerfreshfoods.com