Brazilian Ginger: Opportunities Ahead as Chinese Price Increases

Ginger is mainly known as an Asian spice. The zingy spice is mainly produced in India and China is the largest exporter of the spice. Brazil is not the first country one would think of when thinking about ginger. However, Brazilian ginger is some of the highest-quality ginger available.

Ginger grown in Brazil is the Zingiber Officinale variety, the basic type of ginger found in most stores. However, according to Santanas Ginger, a Brazilian ginger grower and exporter, Brazilian ginger is firmer, bigger, and its skin is shiny and smooth without blemishes. Brazilian ginger has a fibrous flesh, whilst Asian ginger is often quite smooth on the inside, and is often produced organically. The Brazilian climate is very well-suited for ginger production. Ginger needs to be grown in a humid environment, above sea level. Brazil’s elevated plains make for good cultivation ground. Around 95% of all ginger exported by Brazil comes from Espirito Santo, a tropical coastal province.

In 2018, around 16.0 million USD worth of ginger was exported by Brazil. This makes Brazil the 7th largest ginger exporting country in the world. The main export markets are the USA and Europe. Export has been growing over the last few years and Santanas Ginger expects the export to grow even further. They say that the demand for ginger, in general, is rising. Ginger is seen as a superfood that is very beneficial for the digestive system by consumers in Europe and the USA. Furthermore, Brazilian ginger is making a reputation for itself as a high-quality version of the well-known spice. It is generally more expensive than Chinese ginger, but the higher quality makes up for this price difference. Due to this price difference, Brazilian ginger competes with Chinese ginger on quality solely.

However, earlier this year, the export price of Chinese ginger increased by around 30%. This was due to a low supply and a high price in the domestic market. As the export price of Chinese ginger increased, the demand from Europe decreased. Given the increased Chinese price, European importers preferred ginger from Latin America over Chinese ginger. As such, companies like Santanas Ginger have shifted their focus from the USA to Europe. China still dominates the global market due to the massive volumes of ginger it exports. However, high export prices for Chinese ginger present opportunities for ginger from Latin America.