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George Paul Huamán, Cooperativa Central Alta Montaña:

Port congestion in Callao slows Peru's ginger trade, causing uncertainty

Peruvian ginger has gained prominence in international markets, but its production and export face constant challenges. From the pressure to maintain quality standards to the impact of rising logistics costs, producers must adapt to a demanding and changing market.

Peru's ginger season peaks from September to January, with a second marketing stage in March. "Production in 2024 decreased slightly due to climatic factors," stated George Paul Huamán, commercial manager of the Central Alta Montaña Cooperative. Despite this, the cooperative managed to maintain its exports, sending 20 containers of ginger to the Netherlands, with 15 containers in December and January.

© Central Alta Montaña

One of the main challenges in growing ginger is the fungi control in humid regions such as Pichanaki. "Senasa plays an important role in ensuring compliance with phytosanitary requirements," Huamán stated. The cooperative implements a traceability system to guarantee quality, from seed to final destination, ensuring compliance with customer requirements and environmental sustainability, as any inconsistency at the destination can result in the product being incinerated. "We've heard stories from exporters whose containers were destroyed in Europe because they didn't meet standards, so we make sure that every batch complies with sanitary requirements," he stressed.

© Central Alta Montaña

"We have organic and Fair Trade certification, which gives us access to clients who demand high standards," Huamán said. These certifications ensure more stable prices, protect producers from market fluctuations, and open up opportunities in higher value-added niches.

The cooperative has access to international financing at competitive rates and recently obtained a loan from Agrobanco with an interest rate of 3.5% per year. "This has allowed us to expand our exports and improve our production capacity," he added.

© Central Alta Montaña

The ginger market has experienced fluctuations in recent years. "The price of category 2 ginger, which we mostly sell, has fluctuated between $28 and $30 per 20 kg bag," Huamán stated. The higher quality category 1 has reached up to $40 per bag. Growing competition from Brazil and the arrival of new producers in Peru have made the market more dynamic, forcing exporters to differentiate themselves in terms of quality and certification.

One of the main obstacles that Peruvian exporters face is the logistics crisis. "Freight rates have risen from $2,500 to $3,500 per container, which forces us to rethink export strategies," Huamán stressed. In addition, congestion at the port of Callao has slowed down operations, affecting delivery times and generating uncertainty in international trade.

"We hope we double our exports in 2025, as our producers have also doubled," Huamán stated.

© Central Alta Montaña For more information:George Paul Huamán
Cooperativa Central Alta Montaña
Peru
Tel: +51 964 969 634/ +51 942 942 126 914
Email: ghuaman@coopcentral.pe
Email: rhuaman@coopcentral.pe
http://www.coopcentral.pe