In the last five years (2016-2020), Peruvian ginger exports have increased by an average of 6% per year. In 2020, the country exported 838,000 tons of fresh ginger (which wasn't crushed or pulverized). Prices have increased since 2016; however, they registered a significant drop this year due to an oversupply of the product.
In 2020, the average price of ginger increased by 27%, which stimulated the increase in plantings and increased production in 2021. This increase in supply has exceeded the estimated demand and caused the current drop in prices, according to a report by associatividad.org.
The exportable supply of ginger is dominated by China, India, and Thailand. In recent years, Peru has become an important exporter because of the quality of its product, aroma, and color, but also because much of its offer has organic certification, which, added to its seasonality (which coincides with the months of lower Chinese production) has allowed it to achieve better average prices than the Chinese, Indian, or Thai exports.
However, the Peruvian supply window has been affected by the general increase in supply caused by the good prices of this vegetable. India has increased its supply in the months of the Peruvian window, as well as China, Thailand, and Peru itself.
What to expect
The Peruvian supply competes with the Chinese and Thai supply from March to June, with the Brazilian product from June to August, and with the Indian and Thai ginger between August and December. However, the current drop in prices should lead to a decrease in the area sown for the 2021-2022 season.
According to associatividad.org's report, since the ginger harvest can be delayed for several months, and its derivatives (dehydrated, flaked, or powdered ginger) can be preserved for long periods of time, ginger stocks may have an impact on prices until the first months of 2022.