Since the COVID-19 health emergency, ginger has captured the attention of the international market for its medicinal properties. This has had a positive impact on its export, making it jump from being Peru's 25th most exported agricultural product before the pandemic to its 12th one in 2021. However, in 2022 it fell back two places within this ranking. This led many to wonder if the ginger boom had come to an end.
Apparently not, because since 2023 began, especially between March and May, Peruvian ginger exports have been better than expected. So far this year (until the end of May), the country has shipped a total of 30,204 tons of ginger for US$40 million, i.e. 60% more volume and 76% more value than in the same period of 2022. On the other hand, the average price in the international market was US$1.32 per kilogram, i.e. 10% higher.
This increase in exports of the Peruvian product has been mainly due to the increase in purchases by the Dutch, which has impacted the average price of the product. This is mainly because the world's largest producer, China, had a lower harvest (40-50%) this year, compared to 2022. The vacuum left by the lack of supply is what has generated greater demand and better prices for Peruvian ginger.
So far this year, logistics costs have been decreasing, reaching pre-pandemic levels again; something that is expected will continue throughout the year. This will benefit agricultural exports, and even more the remittances of Peruvian ginger, taking into account that China's lack of supply this year will open opportunities in distant markets that normally wouldn't be profitable for Peruvian ginger due to logistical reasons.
The Dutch case is a good example. In 2022, Peruvian ginger lost space there due to high logistics costs, but this year's better values and the reduction in Chinese supply have had a positive impact with one of the highest prices available (US$1.38 per kilogram), 4% above the average cost. However, the Brazilian offer should be taken into account, given that its lower prices could limit the attractiveness of Peruvian ginger.
It's also worth noting that, even though it is not the main cause of this year's rebound, demand for ginger has continued to increase, which has allowed increasing the volumes shipped to existing markets, such as the United States and the Netherlands. This is due to the new uses that have been identified for this root, especially related to the food and medicinal field.
Source: Agraria.pe/ Fresh Fruit