Peru: One response to the global oversupply of ginger is to give it added value

Whole Ginger

Vegetables

Peru

Published Mar 28, 2023

Tridge summary

In the last two years, the price of the crop has fallen from US$2.1 per kilo to US$1.16 per kilo, due to a global oversupply from China. Although they are still incipient volumes, some producers are turning to offer products with added value, a strategy that is viewed favorably by Promperú. Exports of ginger without crushing or pulverizing (fresh) in 2017 reached US$51 million and in the following years there was an irregular result between increases and decreases in what was exported. However, in 2020, the year of the pandemic, there was great growth and the total value exceeded US$100 million in shipments. “This coincides with the fact that China stopped supplying the world with its production, due to the closure of its borders. So, at that moment, Peru places its shipments at a better price, since ginger is related to a series of health benefits," explains Ricardo Limo, Promperú's director of export promotion.

Original content

In 2022, ginger exports were closed at US$65 million with an average price of US$1.16 per kilo, far behind the US$2.1 per kilo that was traded in 2020. "There is an interesting effect here in the case of ginger. The opening of Chinese exports to the world brought a significant drop in international prices. So, we have to take some additional measures to deal with this situation," he says after recalling that this similar experience of temporary growth and then a sharp drop in the shipment of a crop has been previously observed with quinoa, maca and others. The alternative recommended by the expert is that we start working with products with added value, since ginger is highly valued and various medicinal benefits are attributed to it, such as strengthening the immune system. He considers that it is necessary to go to a second moment and improve the differential elements that ginger needs to position itself in international markets. Ricardo Limo, director of export promotion at ...

Source: Redagricola