Peruvian ginger is facing phytosanitary issues that could affect its competitiveness abroad. The expansion of the crop and pressure from competitors such as Brazil are generating mixed expectations in the sector. Market stability will depend on how Peruvian producers handle these complications.
The 2024 season was marked by a shortage of raw materials and high prices, but the landscape will change significantly this year with a 40 to 50% increase in the planting area, stated Grober Galindo, representative of La Campiña.
"The 2024 season ended early due to low sowing and the presence of Ralstonia, which generated fear in exports to Europe. Since prices were good last year, many producers increased their cultivation area this year but without considering that these high prices were a consequence of the shortage," Grober said.
The growth in planted areas suggests there will be a greater availability of ginger on the market, which will put downward pressure on prices. Currently, the price of a 30-pound box stands at $38 in the US, which is unusually high for this time of year. However, with increased supply and more Brazilian products coming in, prices are expected to fall. "The market is already monitoring the production volume in Peru. Buyers in Europe and the United States know the numbers and adjust their purchases according to supply. In addition, Brazil remains a strong competitor, with better logistics and more mechanized production that reduces costs and delivery times," Grober added.
One of the Peruvian ginger industry's main challenges is the Rastonia bacterium, which has raised concerns in the European market. "It poses a high risk. It can appear in the product's very early stages and, if detected in a container, it must be incinerated, which represents a great loss for exporters," Grober said. Faced with this situation, Peruvian companies have intensified sanitary controls and are working with entities such as Senasa and INIA to prevent outbreaks. In addition, the sector has strengthened collaboration between producers, forming associations that seek to implement better agricultural practices and guarantee quality standards demanded by international markets.
Despite the drawbacks, the demand for Peruvian ginger remains strong. "We are exploring new opportunities in the United States and expanding our product range, including fresh ginger, IQF (Individually Quick Frozen), and ginger juice. However, exports to Europe remain a challenge due to this market's strict phytosanitary standards," he stated.
For more information:
Grober Galindo
La Campiña
Peru
Phone: +51 994 412 070
Email: grober@lacampinaperu.com
https://lacampinaperu.com/