Navigating the transition on ginger growing regions

Ginger supplies are transitioning between growing regions and good-quality ginger is more scarce currently.

China: Kian Fattahi with Global Farms Enterprises in Los Angeles, CA says a few months ago, conventional ginger supplies saw a price drop into the low teens because of an oversupply on the market. “There were just way too many containers shipped,” he says. “Since then, we’ve seen a lot less ginger entering the market from China.” He says supplies remain steady and pricing continues to rise on the good-quality ginger.

Thailand: Thailand is finishing up its production right now. “The quality has been pretty mixed. There’s just a shortage of good quality ginger out there,” says Fattahi.

Brazil: The market is waiting on Brazilian ginger to mature before shipping following its April start. “We can’t bring too much right now because we don’t have the shelf life on the product that we would if it was fully mature,” says Fattahi.

Adding to the mix are shipping issues from Brazil--much of it to do with a shortage of container space. “They’re not getting enough vessels over there. The prices of Brazilian ginger are pretty low right now but it’s because it’s a matter of being able to get it out of the country,” says Fattahi. “We’ve had several shipments canceled already.” He believes ginger shipments will increasingly rely on air to move product in the short term and that things could improve by June.

Peru: Organic ginger supplies are winding down from older Peruvian crops. “The quality arriving is quite mixed, which is understandable because it’s a little older,” says Fattahi. New crop is anticipated to arrive in early June and Fattahi says right now it’s navigating to ensure it has enough good quality here to cover off demand until the new product begins shipping.

As for demand, it has stayed strong on ginger. “Every week things are more or less steady for the last four or five months,” says Fattahi.

Zia Fattahi and Kian Fattahi.

Pricing is similar to last year though good-quality ginger is seeing higher pricing. “Across the board with the exception of Chinese ginger, there’s not that much good quality here,” he says. “People want good quality ginger and they’ll pay a little extra to make sure that what you’re shipping is good.”

Looking ahead, what Fattahi is keeping a particular eye on is the Brazilian shipping situation. “We hope things are going to improve more quickly. They have a surplus on exports,” he says. “The demand for containers on the Pacific between the U.S. and China, along with increased freight costs on that route, is another reason why they’re not getting enough container ships right now.” He notes that product sitting and waiting to ship is also further depressing pricing in the market which will hurt Brazil as a whole.

For more information:
Kian Fattahi
Global Farms Enterprises
Tel: +1 (323) 415-6000
info@global-farms.com  
www.global-farms.com 


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