Brazilian ginger prices doubled in 2014

Brazil's ginger production was significantly reduced compared to last year, bringing with it a drop in export volumes.

"Brazil usually exports between 70 and 80% of its production, but this year the percentage has dropped to 40%," said a representative of UGBP, a company exporting ginger and other crops such as papaya, mainly to Europe and the U.S.

The states of Sao Paulo and Parana faced serious problems with labour and the weather that became an obstacle for the planting. 

"In Sao Paulo and Parana nothing was harvested," said a producer, adding that "this caused the production to be concentrated in the state of Espírito Santo." 

This exceptional situation, in combination with the growth in purchasing power of the domestic market, pushed prices up.

"Many producers currently prefer to sell in the Brazilian market, because prices go up every week and profit margins are very high," he explained. 

In the Brazilian market a 14 kilo box of unwashed ginger is marketed for around R$80-R$85 (€26 - €29) and it is sold to Europe for €39.50 FOB BRAZIL; double the value of last year. 

At UBGP they were cautious when asked about a possible recovery of production volumes for next year.

"It would be just speculation to talk about what might happen in 2015, but we notice a growing interest for the product and our marketing campaigns are giving very good results," he said.