Ginger prices drop to a tenth of COVID-19 highs in South Africa

By Lindi Botha Since prices for ginger shot up to R300/kg during the COVID-19 pandemic, farmers planted more ginger, swinging the supply-and-demand curve towards lower prices. Mpumalanga ginger farmer Steyl Willemse noted, however, that the market was correcting itself, and due to the lower price, less ginger would be planted in the coming season. “Prices last year were far below average, dropping to R20/kg. Since late February, prices have climbed to around R60/kg as volumes and quality were subdued because of rain.” The Lowveld area of Mpumalanga received unprecedented amounts of rain at the start of the year, creating perfect conditions for fungi to flourish. Willemse said that while there were crop protection agents that could be used to protect against fungi, the non-stop rain meant that they could not be applied and the ginger rotted in the ground. Jaco Oosthuizen, RSA Group CEO, said that challenges caused by weather had constrained supply, with low market prices paid for ...