Peruvian Ginger Exports to the US rose by 137% in 2020

Price war with China

Despite China resuming its exports of ginger in 2021, the Peruvian "kión" (ginger) has sustained its popularity in the US, allowing it to fetch premium prices. Peruvian ginger prices in January reached USD 1.99 per kg, compared to Chinese ginger, which cost USD 1.86 per kg. According to reports from the United States Department of Agriculture (USDA), the trend continued in the following months, with the gap in prices widening. In February, Peruvian ginger increased to USD 2.69 per kg, as the Chinese product dropped to USD 1.76, and in March, Chinese ginger stood at USD1.13 per kg, while Peruvian ginger cost at USD 2.49 per kg.

Peru and China have experienced a fall in ginger prices in the US market this year, compared to 2020, due to the saturation of supply exerted by Chinese shipments. Despite this, the value of Peruvian ginger has been less affected compared to the Chinese product. Peruvian ginger prices fell by 41% in the first quarter of 2021 compared to the same period in 2020, while the cost of Chinese ginger dropped by 52%.

Peruvian ginger exports continue to rise

According to AGAP, ginger is a vital product in Peru's agro-export catalog due to its potential in several markets. This potential was shown in the strong growth of Peruvian ginger exports in 2020, despite the COVID-19 pandemic. Peru's primary ginger market in 2020 was Europe, importing USD 55M, 175% higher than the previous year. Regarding individual countries, the US was the leading market, importing USD47M worth of product, amounting to 44% of the Peruvian ginger market, an increase of more than 129% compared to 2019. The US was followed by the Netherlands, importing USD 39M worth of Peruvian ginger, amounting to 37% of the Peruvian ginger market, an increase of 197% compared to the previous year. Peru's remaining top ginger markets were Spain (USD 5.6M), Canada (USD 4.9M), Russia (USD 3.4M), Germany (USD 2.9M), the UK (USD 1.7M), Brazil (USD 1.1M), Italy, Chile, and the Dominican Republic.

Peru-US trade outlook

Peru and the US have a long and strategic trade partnership that is still going strong despite the Covid-19 pandemic. Projections for sustainable growth between the two countries have been reasonable in 2021, with the free trade agreement between the two countries aiding this. According to AGAP, export figures for 2021 are expected to replicate those of the previous year.

 Sources:

• Redagricola. “Peruvian ginger exports to the US grew 137% in 2020.”
  
• Produce Blue Book. “Peruvian ginger exports more than double in 2020.”
  
• Fresh Plaza. “Peruvian exports to the US grew during 2020.”
  
• Redagricola. “The Peruvian kion will continue to rise in world markets.”