Based in Pichanaki, Peru's main ginger producing and exporting area, Agroexportaciones Llacta has established itself as a leader in the export of organic ginger. It has stood out for meeting the demanding standards of the European market and contributing to the development of agriculture in the native communities of the Central Peruvian jungle, says Manuel Llactarimay, commercial and operations manager.
Llactarimay says that Agroexportaciones Llacta planted 20 hectares of organic ginger last season (September-November), with the goal of exporting 40 containers by 2024; 20% more than in 2023. This year, the company plans to plant 35 hectares of ginger and 5 hectares of organic turmeric, driven by the growing global demand for organic products, as healthy and environmentally-friendly food is increasingly trendy.
In addition to its traditional markets in Europe, the company aims to gain access to Canada and Morocco, hoping to take advantage of the growing global demand for organic products. It currently exports to countries such as Germany, Russia, the Netherlands and Spain, as well as the United States, the Dominican Republic, Ecuador, Chile, Panama and Colombia.
Peruvian ginger is appreciated for its superior quality, especially in terms of flavour and aroma, which help it stand out from its competitors from Ecuador and Brazil. However, Llactarimay says that one of the disadvantages of Peruvian ginger is its size, as the use of chemical fertilizers is limited in organic cultivation, which results in smaller roots.
"The European market is the most demanding in terms of organic regulations. All our products undergo strict quality controls to ensure they meet these regulations," says Llactarimay.
The biggest challenges for ginger producers in Peru are the weather conditions and the impact of pests, such as Erwinia and Ralstonia, which have had a significant impact on the yields. This year, the production has fallen because of these pests, so prices have increased by 40% compared to the previous year (the price of a 30-pound box can range from USD 30 to 33). However, the demand remains strong, especially in markets where Peruvian ginger has consolidated its presence, such as the Asian communities in California.
"The demand has fallen by 30% during the summer, but is expected to increase again in the fall. Our exports peak in September, October, November and December," says Llactarimay. He also points out that Brazil, with its larger production and lower costs (FOB price of 20 USD per box in the port of Los Angeles, U.S.), is a strong competitor, although Peruvian ginger will still have its niche because of its distinctive taste.
Product diversification
Agroexportaciones Llacta is not working exclusively with ginger. The company also exports turmeric, annatto, cocoa, onion, orange and garlic. With this, it has achieved both product and market diversification. "We started exporting turmeric to the Netherlands and Spain, and we have seen significant growth in these markets," says Llactarimay.
With growth projections and new opportunities in emerging markets, including the supply of ginger to the industrial sector, this Peruvian company continues to play a key role in the export of high quality and sustainable agricultural products.
For more information:
Manuel Llactarimay
Agroexportaciones Llacta SAC
Pichanaqui, Chanchamayo, JunÃn, Peru
Tel.: +51 978 001 892
[email protected]
[email protected]
www.agroexpollacta.com.pe