Peruvian ginger and turmeric exporters shipping to Europe are having a difficult time this year, marked by production challenges and a growing demand. The Asociación de Productores Agroindustriales y Servicios Múltiples (Apasem Foods), led by Peter Herrera, began growing ginger in 2013, and since 2018, it has excelled in the production and export of organic ginger, but it is facing significant challenges due to climatic and phytosanitary conditions, as well as international competition.
According to Herrera, ginger production in Peru has declined considerably in 2024. While approximately 4,599 hectares were sown in the 2021/22 campaign (Source: BCRP - DRA Junín), that figure fell to around 2,707 hectares in the 2023/24 season (Source: BCRP - DRA Junín), which translates into a 41% reduction. This decrease in the acreage is largely due to low prices in 2022 and the presence of bacterial diseases such as Erwinia, Rasltonia and other fungi, which caused significant losses for producers and shortened this year's season.
Despite the lower supply, the demand for Peruvian ginger has remained stable, especially in Europe, where quality standards are rigorous. "We have a strong competitive position in the European market thanks to the high quality of our Peruvian ginger, characterized by its skin colour, high gingerol content, intense aroma, high nutritional content and our organic certifications," says Herrera.
However, competition from countries such as Brazil or China remains a challenge. Although Peru offers a high quality product, Brazil has increased its production and China, despite rising freight costs, remains a relevant competitor. "The production costs of organic ginger are not the same as those of conventional products, which entails greater pressure on the profit margins," says Herrera.
Apasem Foods exports 90% of its production to Europe, but has also seen an increase in its exports to the United States, where regulations are not as strict and freight costs are lower. "Many exporters are opting for the US market because of the fewer complications compared to Europe," says Herrera.
Despite these difficulties, the price of ginger has improved slightly in the last two months of the 2024 season compared to the previous year, which has been a relief for Peruvian producers. In the export market, 13.6 kg boxes of organic ginger are currently selling for USD 27-29 FOB, a considerable increase from the USD 22-23 of the same month in 2023. Apasem Foods plans to export 70 containers of organic ginger in 2024, targeting European and US markets.
Turmeric
The company is increasing its turmeric powder exports to Austria, the Netherlands and the U.S., thus diversifying its processed product range.
"In recent years, exports and the demand for the dehydrated product and ginger and turmeric powders have continued to increase, achieving a 10%-15% growth annually. Other industrialized products have followed a similar trend," says Herrera. "Within the organic segment, the price of turmeric powder averages around USD 3.7 per kilo, and organic ginger powder costs USD 5.1 per kilo."
Apasem Foods continues to face the challenge of maintaining its competitiveness by offering quality products in an increasingly demanding global market. The firm also hopes that the conditions for local producers will improve in the coming years.
For more information:
Peter Herrera
Apasem Foods
Av. Nueva Planicie - Urb. Las Flores block 2 s/n
Pichanaqui, Junín - Peru
Tel.: +51 956 491 550
[email protected]
[email protected]
www.apasemfoods.com