As the Northern Hemisphere winter nears, the demand for ginger is expected to increase again. However, supply from major exporting countries Brazil and China is coming to an end, just as Peru is starting the ginger export season again. Ginger exports from Peru showed a big decline of 43% up to week 40 compared to last season. Exports to North America declined by 33%, with a substantial decrease of 54% to Europe. Shipments by sea from Peru decreased with 47%. The peak season for Chinese ginger exports is coming to an end. The lower demand during the European summer will now be reversed with the colder weather settling in. The attacks in the Red Sea are still causing increased costs for Chinese ginger shippers. Time delays as well as cost increases has led to importers switching to cheaper Brazilian supply. In North America, demand is strengthening and tighter supply is pushing up ginger pricing. This year's growing season for ginger in Brazil was a better one, which helped shippers recover the market it lost in the past two challenging years.
In Italy the situation for ginger is quite clear and negative with the last supply coming from China, that is not of the best quality. In the Netherlands, the ginger market has taken a drastic turn in just a few weeks. It shifted from a summer of low demand to "a hot market with prices rising more sharply than we have perhaps ever seen in such a short time." Germany relies mainly on ginger imports from China, while supply also comes from Peru and Brazil. There is limited local production, but rot has set in, leading to a cultivar change that has developed modestly. South Africa's new plantings of ginger are emerging well, and all indications point to a good year ahead.
Peru: Big export volume decline at start of the new season
Peru's ginger exports showed a big decline of 43% up to week 40 compared to last season. Shipments by sea decreased with 47%. Exports to North America declined by 33%, although it is still Peru's biggest export market for ginger with 58% of shipments going to this market. Europe has 40% share with a substantial decrease of 54%. Mainly organic ginger was exported taking 83% of shipments with a big decrease of 69% in exports of conventional ginger from Peru. These statistics from QC Fresh Fruit in Peru shows up to week 40, 1,335 containers were exported with a total FOB value of $61,933,644.
According to a grower and exporters this reduction is due to a combination of adverse weather conditions, rising certification costs and the presence of the Ralstonia bacterium, which has made it necessary to redirect a large part of the export volume to the United States. The 2024 ginger campaign has already started, with modest projections. The grower warns that the weather conditions could cause the bacteria problem to worsen, which would further reduce the production. "We don't think there will be enough planted production to meet the demand in the long term."
Another exporter notes, a factor that is harming Peru's reputation as a quality ginger supplier: "The informality of the vast majority of Peruvian ginger operations, bring with them safety and quality problems, which have affected the image of the product. Organic ginger is still in high demand, but Peru is seen as a risky source in Europe, due to the bad actions of some exporters."
Prices for organic ginger have exceeded $30 per box in recent weeks, while conventional ginger has fluctuated between $27 and $28 per box, although it reached $25 during times of low demand.
China: Peak export season ending
The peak season for Chinese ginger exports is coming to the end. On the overseas markets, demand for ginger from European supermarket chains and wholesalers is rising again after the traditional quiet period during the summer holidays.
Due to the Red Sea crisis, shipping costs have surged, delivery times have been extended, and the costs and risks of Chinese ginger have increased. As a result, most importers are opting for the cheaper Brazilian ginger, which is much cheaper comparatively.
According to an international trader, ginger prices vary significantly between different origins. Since late September, Chinese shipping costs have started to decline, and the supply pressure is expected to ease by the end of the year.
North America: Strengthening demand and tighter supply push up ginger pricing
Brazil is continuing to ship ginger to the U.S. While it's expected that there are only about five to six weeks left of its season, there is still good quality ginger available.
This year's growing season for ginger in Brazil was a better one, which helped shippers recover the market it lost in the past two challenging years. This season, not only was the quality much better, but there was also more volume in the season. Some expect there to be increased export volumes to both the U.S. and Europe this season.
In turn, with good demand, that's made for a stronger market that's continuing to strengthen. The demand is expected to increase not only because of the colder weather but also because of the lack of supply.
Along with Brazil, Peru is still shipping ginger to the U.S. and will continue to do so until January. Costa Rica will start soon with its young ginger, and China also continues to ship product. New crop ginger from China will begin in January.
Italy: The situation for ginger is quite clear and negative
According to a wholesaler in northern Italy, the situation for ginger is quite clear and negative. In general, the trend is always the same in October, November and December. China is coming to the end of its season, the quality is not always the best as usual, prices are very high and those for purchase are close to €3/kg. As a result, sales are also very high. The new Chinese season will start at the end of the year, "so we will have to suffer", according to the wholesaler. The Brazilian ginger season is also coming to an end, and prices per kilo are in line with the Chinese product.
As for Peruvian ginger, the new campaign is about to start (some have already started). As always, at the beginning of the season, prices are high. However, not everyone likes the Peruvian origin because of its shape and small size. "In my opinion, it is still the best in terms of taste, but it is almost exclusively sold in supermarkets".
Netherlands: Ginger market takes a drastic turn
The ginger market has drastically changed in just a few weeks. "We have come from a difficult period in the summer with lower demand and consumption, but in just two to three weeks, this has shifted to a hot market with prices rising more sharply than we have perhaps ever seen in such a short time," says a Dutch importer. "Currently, prices are around €3.75 per kilo. Brazil has very little available, and I don't expect that anticipated volume to arrive in Europe. China still has some old harvest on the way, but FOB prices in Peru remain high. It's uncertain how the market will develop, but I wouldn't dismiss the possibility that these high prices could persist well into January."
Germany: Relies on ginger imports with limited local production
According to preliminary figures, around 32,052 tons of ginger were imported into Germany in 2023. Compared to the previous year, the import volume has decreased. However, in the long term, imports of ginger have increased.
Germany imports ginger mainly from China. More than 16,200 tons of ginger were imported from China to Germany in 2023. The second most important supplier was Peru, followed by Brazil.
This year the ginger in Reichenau (Bodensee) grows badly according to one producer. The first few years this culture grew very well, but after 3 years there is more and more rot. That is why the variety was changed in 2024. So far, however, this has developed very modestly.
South Africa: Local supply available
The new plantings of South African ginger are emerging well, and all indications point to a good year ahead, says a ginger grower in Mpumalanga. The local ginger season runs from March onwards and traditionally ginger volumes are low between January and March and during this period, ginger is imported from China and Vietnam mostly.
At the municipal markets, ginger trades between R38 (2 euros) and R60 (3.1 euros) per kilogram, with the last supplies of the previous season's locally-grown ginger at the upper end.
Next week's topic: Grapefruit