Covid hype around ginger in South Africa has cooled, now oversupply

Published 2021년 9월 22일

Tridge summary

The ginger market in South Africa has experienced a downturn, returning to pre-pandemic demand levels due to looting in KwaZulu-Natal and an oversupply of the root. This follows a period of high demand as people sought out foods for health boosts during the Covid-19 pandemic. Ginger prices were particularly good during this time due to the shortage, but have since weakened. Despite a decrease in demand, household consumption of ginger has increased, aligning with trends towards low-carb, healthy eating. However, the industry has seen a reduction in ginger acreage due to increased production costs and the need for irrigation. Heavy rainfall has also caused some losses. Macview, a company that ships ginger to Johannesburg and Cape Town, has noted the decline in demand and shipping activities. They also grow turmeric, but the market for it has stagnated due to its small size and limited growth.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

The ginger market flourished last year as people sought out foods to boost their defenses against Covid-19. However, the demand for ginger is back to pre-pandemic levels, or even weaker, as looting in KwaZulu-Natal has hit the ginger demand in this province hard. Hans Schroeder, head of production (macadamias, avocados and ginger) at Macview in Kiepersol, Mpumalanga, says that after the outbreak of Covid there was a shortage of ginger. The prices were very good then. This year, however, there is oversupply and weak demand. In May, Macview announced that it did not expect a repeat of last season. "In the end, ginger turned out not to be the panacea after all and the hype cooled down," notes Ruan van der Westhuizen, head of finance and marketing at Macview. The demand for ginger is back to old levels and the hype has not brought many new ginger consumers. Ruan does point out that households have started to consume more ginger in the past decade. This fits in with the trend for ...

Source: AGF