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Ginger consumption feels consumer’s pinch from inflation

Supplies of imported ginger have stabilized. “There is less offer of product when compared to the beginning of the season,” says Apanatche Bark of Pommer Fresh Foods. “The supply this year is larger compared to last year.”

Currently ginger is coming from Brazil, Peru and China, though volume from China is decreasing.

Meanwhile, demand is seeing some connection to the challenging economic times. “We’ve adjusted our supply for the decreasing demand already. We adjusted our forecasts and programs with all customers in a more conservative way to avoid further losses,” says Bark. “Because of the recession, we foresee a reduced consumption because ginger is not a necessity to put on the family's table.” In turn, Bark notes that general production will likely be less in 2023 as well.

Lower production numbers wouldn't be surprising given the current low prices. Increased grower costs make it especially challenging. “Growers and companies have zero margins or are working at a loss. The overall costs went up drastically and the market prices did not follow that,” says Bark. “Price per price, last year around this time we had Brazilian ginger being sold at a lower price than today. But it was still doable because the logistics costs and resources costs were not so high like this season.”

Better times ahead?
That said, Bark is optimistic looking ahead at the market noting that reduced production in the future could assist with pricing. “The quality is also better now that the ginger is fully mature. Usually, September is when the market gets better for ginger,” he says. “We are very concerned with the economic pressure and recession that is threatening the world now. We already felt a reduction in consumption when compared to the same period in previous years and we felt that it could be related to the final customer being under financial pressure.”

To help with ginger consumption, Pommer is finishing up construction on a 24,000 sq. ft. facility in Brazil to handle ginger and where it will also produce processed products such as powder, oil, pickled, dehydrated, candied ginger and more. “This will put us on a more sustainable trend. We will reduce the waste of our product significantly by processing it onto these new products,” says Bark.

Coming out of this challenging year are other new developments for Pommer. “Besides the logistics challenges that have been an issue worldwide, we are focusing on new ways to increase our productivity and better control the diseases on the local farms that brought lots of problems in the last seasons,” he says. “We are also putting efforts into developing ways to be able to work with Brazil ginger year-round.”

For more information: 
Apanatche Bark
Pommer Fresh Foods
Tel: +1 (754) 701 5767   

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