Supply of ginger right now is low from Brazil as it wraps up its season with approximately two more weeks left in the fields. “We have low availability and considerably high cost compared to past seasons. Brazil had much less product available because it planted less,” says Frederico Stuhr of Pommer Fresh Foods.
That has Brazil ending its season early this year. Usually ginger from there ships into December and January--last year especially given there was a lack of supply at the time from China.
As for China this year, reports indicate it will be able to supply the whole market next with ginger, though Pommer has ginger coming from Central America and Thailand to fill the gap. “We also have premium buyers who we are able to supply ginger by air from Brazil--old ginger and then we switch to young ginger,” says Pommer’s Apanatche Bark. “However it is a high cost and we need to be careful to move it.”
Meanwhile, with temperatures dropping in North America, demand for ginger is picking up. “This year though it took longer for demand to increase. Usually, it starts increasing in September and this year it was more like the middle of October,” says Stuhr.
Economic factors
There are concerns that the economy may be playing a role in the market this year. “In the United States or in Europe, which are the biggest markets for the ginger we work with, the economic situation isn’t easy,” Stuhr says. “People are spending less money and we see this affecting ginger consumption as well.”
To help set up a stronger 2024, this year Pommer has been working on improving how lean its supply chain is for a competitive edge. “Even though this year we had not as big a crop compared to last year, we were able to improve our processes,” said Stuhr. It’s also in the final phase of developing ginger by-products such as teas, dried powders and more with its first product possibility being introduced in 2024.
That said, the challenging season with low supply brought some things into focus for Pommer. “We worked with our good customers, the ones that really know how to work with the ginger,” says Bark--no easy feat in a season of high costs and prices. “The positive point was that we developed really good partnerships with our customers.”
As for pricing on ginger right now, it’s still very strong given the low supply. That low supply this year prompted growers in Brazil to control the prices for exporters/importers and keep them strong throughout the season. “However next year we’re forecasting it won’t be as high,” says Stuhr. “We might see the price come down, especially since there’s going to be more product available.”
For more information:
Apanatche Bark
Pommer Comercio Internacional Ltda
[email protected]
Frederico Stuhr
Pommer Comercio Internacional Ltda
[email protected]
www.pommerfreshfoods.com