The supply chain for organic ginger in the U.S. is pretty much empty. As a result, retailers have been eagerly waiting for Peru's season to get started. "Ginger from Peru is a very desirable product, and the country grows a yellow variety that has a high level of gingerol that most other countries don't grow," says Chris Ford with Viva Tierra Organic. As a result, demand is high, and retailers are excited to put the new crop of organic ginger on their shelves. "At the moment, the ginger roots are about 85 percent mature, which is not enough for a two-week boat ride," Ford shared. The product is still quite fragile and tender and therefore, it is flown in on a direct flight between Lima and New York. "Air shipments are very costly, but the demand is there for a superior quality product." By the end of May, early June, the product will be mature enough to be put in an ocean container.
Young ginger.
High pricing
Thanks to high demand, the season starts off strong with pricing being substantially higher compared to this time last year. This is driven by an empty pipeline, but speculation over volume also plays a role. "Planted hectares are comparable to last year, which was a low-volume year." With movement at the beginning of this season already being much greater than a year ago, the supply situation is expected to be challenging again come January 2025. "All in all, I expect a similar supply scenario to last season," Ford commented. While Peru's ginger season roughly runs from May through April, Ford expects supply to become limited by February. "Our goal however is to take care of our retail partners and have year-round supply. Therefore, we are actively working with supply partners in the northern hemisphere to complement supply when Peru runs out," he said. One of these northern hemisphere geographies is Nicaragua.
New crop organic ginger fresh from jungles of Peru.
Responsible supply chain
Viva Tierra's Organic to the Core® ginger from Peru is Fair Trade certified, promoting sustainable livelihoods and safe working conditions, as well as transparent supply chains and a protection of the environment. However, a significant part of Peruvian ginger also comes from questionable operations with an informal workforce. "While the ginger from these operations is cheaper, there is no regard for product or workers' safety," Ford said. "We have an opportunity and responsibility to uplift the communities together and we need to continue fighting for fair trade." In line with Viva Tierra being a responsible trader, the company has developed non-plastic packaging for its organic ginger. "A good part of our program is retail-based, and our retail partners see the value of responsible packaging."
Viva Tierra Organic continues to expand its offerings from Peru and is trialing an organic lime program this year.
For more information:
Chris Ford
Viva Tierra Organic
Tel: 831-917-7321
[email protected]
www.vivatierra.com