What Advantage does Myanmar Ginger Have in The Ginger Market?
Myanmar ginger has several competitive advantages that set it apart from other suppliers and countries in the ginger market:
1. Unique Flavor and Aroma: Myanmar ginger is renowned for its distinctive flavor and aromatic qualities. Its slightly spicy and warm flavor profile makes it a favored choice in various culinary applications and adds a unique touch to dishes and products.
2. Quality and Appearance: Myanmar ginger is often associated with high quality and an attractive appearance. It typically has a smooth, golden-yellow skin that is visually appealing to consumers. This aspect can make it stand out on the market.
3. Competitive Pricing: Myanmar's ginger production can be cost-competitive, which can be advantageous for buyers and consumers looking for economical options. Myanmar has competitive advantages over China and India in the agricultural production sector, that is, large arable land resources, sufficient water resources, and cheap labor, making it possible to produce the ginger at a lower cost of production and offer lower prices than China and India (Raitzer et al., 2015).
4. Availability and Steady Supply: Myanmar's favorable agro-climatic conditions allow for year-round ginger cultivation. This consistent supply of ginger can be beneficial in meeting the demands of both domestic and international markets.
5. Natural and Sustainable Farming Practices: Many Myanmar ginger growers use traditional and sustainable farming practices, which can be appealing to consumers looking for natural and eco-friendly products.
6. Export Potential: The ginger industry in Myanmar has been growing, and the country has the potential to expand its ginger exports further, particularly to neighboring Asian countries. Its proximity to regional markets can be an advantage in terms of logistics and transportation. Apart from that, Myanmar belongs to the status of the Least Developing Countries (LDCs) and, therefore, it has Special and Differential Treatment (SDT) in exporting its products to industrialized countries such as the EU, Japan, and the US under the initiative of “Everything But Arm” (EBA). The EU is the largest importer of spices, followed by North America, then Eastern Asia.
More importantly, the majority of the origin of imported EU spices are from developing countries, and the tariff on raw materials, particularly from the LDCs is generally low, providing a great opportunity for Myanmar fresh ginger to be exported. In addition, the tax for the export of goods from Myanmar is only 2%.
7. Regulatory Compliance: Myanmar ginger producers and exporters can align with international quality and safety standards, ensuring that the ginger meets the requirements of global markets. International Organizations such as Windrock International, International Labour Organization (ILO), and UNDP are providing research and training that focuses on providing ginger farmers with better information on the safe use of agrochemicals and other occupational safety and health (OSH) related information that can improve working conditions, as well as empower government stakeholders including the Department of Agriculture.
It's important to note that while Myanmar ginger has these competitive advantages, it also faces competition from other ginger-producing countries like China, India, Thailand, and others. The competitiveness of Myanmar ginger in the global market is influenced by factors such as quality control, pest and disease management, trade regulations, and the ability to meet the specific requirements of target markets.
To maintain and maximize its competitive advantages, Myanmar's ginger industry should focus on continuous quality improvement, sustainable farming practices, and the ability to adapt to changing market dynamics and consumer preferences. Additionally, market research and understanding the needs and preferences of target customers are essential for sustained success in the ginger market.
Source: Upgrading options for Myanmar Fresh Ginger Value Chains