Weekly Product Updates

W15 Whole Ginger: Ginger Prices Surged in Peru's Organic Harvest Season, Prompting Export Challenges; Espírito Santo Achieves Record Profits Amid Rising Competition

Whole Ginger
Peru
Market & Price Trends
Published Apr 18, 2024
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In W15 in the whole ginger landscape, Peru's organic ginger harvest and export season started with strong market demand, driving prices to unprecedented highs at the beginning of the 2024 campaign, reaching USD 0.81/kg from an initial USD 0.54/kg. Despite lower export volumes compared to 2023, exporters are initiating air shipments to the US and Europe to address supply gaps. However, shipments in W15 saw an 87% YoY decline, with year-to-date exports down by 64%. In Espírito Santo, ginger exports have reached a milestone, generating USD 37 million in profits and ranking as the state's fourth most significant agribusiness product. Despite increasing competition from Chinese ginger, producers focus on maintaining quality to sustain success.

Peru's Fresh Ginger Exports Slump in 2024, Adding to Industry Concerns

Peru's organic ginger harvest and export season began with robust market demand, driving prices to unprecedented highs at the campaign's onset. Typically, prices start low but have surged to USD 0.81 per kilogram (kg) from an initial USD 0.54/kg at the beginning of the 2024 campaign, presenting a significant challenge for Peruvian exporters and their importers compared to the previous season. The new campaign commenced in March 2024, focusing on the domestic market, particularly for baby ginger. Buoyed by its gastronomic boom, Peru's substantial ginger consumption continues to rise annually. Notably, exporters have already initiated air shipments to both the United States (US) and Europe due to shortages of ginger in these markets. This proactive approach aims to address supply gaps and ensure availability, with products expected to be ready for sale and distribution in Europe by W15.

Peru's Fresh Ginger Exports From Jan-24 to Mar-24 Decline

The exported volume of fresh ginger from Peru in the first three months of 2024 remains significantly lower than the previous year at less than half of last year's volume. Weekly shipments have not exceeded 1 thousand metric tons (mt) so far, compared to consistently surpassing this mark in 2023. This trend is concerning and paints a bleak outlook for the remaining year. If the exponential increase in the average price observed in Jan-24, which partially offset the impact of lower volume, is not repeated throughout the year, 2024 is expected to be challenging. In W15, shipments totaled a mere 252 mt, marking an 87% year-on-year (YoY) decline. Year-to-date, Peru has shipped 7,119 mt, a 64% YoY decrease. Additionally, the number of exporters participating in the trade has also notably declined, dropping from over 110 companies in 2023 to less than 70 this year.

Ginger Exports Propel Espírito Santo's Agribusiness to New Heights

In Brazil's Espírito Santo, ginger exports have reached a milestone, with profits hitting USD 37 million for the first time in 2023, making it the fourth most significant agribusiness product. The average price per box soared from USD 2.84 in 2022 to USD 17.02 in 2023, a level that has remained stable. Despite being the leading exporter in Brazil in 2023, prices are beginning to decline due to increased competition from Chinese ginger. Producers in Espírito Santo are focusing on maintaining quality to ensure continued success. The favorable conditions in 2023 and global conflicts led to increased demand and early harvesting in Jan-24. However, the influx of Chinese ginger into the market has started negatively impacting prices.

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