The supply of ginger from Brazil is going to come down because it's planting season. "We plant mainly in September and we still have ginger to export but during this time, there's less supply overall in the market," says Apanatche Bark of Pommer Fresh Foods.
© Pommer Fresh Foods
A look at harvesting in the field.
Peru has stronger ginger supply right now though as the country moves into production on some of its other items, including avocados and mangoes, some exporters turn their attention to shipping more of those commodities over ginger. Labor requirements for those commodities also impacts ginger production somewhat. "So from September to November, we expect less supply generally because of these reasons," Bark says.
Things looked similar last year at this time, though Brazil has slightly more production this year.
© Pommer Fresh Foods
Demand for ginger is expected to increase this month.
Shifting supply elsewhere
However, with the 50 percent tariff on Brazilian products into the U.S., that is changing things this season. Growers and shippers for instance are awaiting word on if Europe will demand more product this season from Brazil. This means some importers bringing product into the U.S. may pivot from sourcing ginger from Brazil to Peru. "Because of that tariff, there will be less ginger from Brazil into the U.S. from September through to December," says Bark. "They are already doing this and shipping to countries such as the UK, Italy, Spain, Africa, Russia and others in order to diversify markets."
Meanwhile, China is also steadily still shipping ginger right now.
© Pommer Fresh Foods
The Pommer Fresh Foods team.
This is all following the slower demand months for ginger of July and August. "The market slows and then in September, demand, we expect, will start to increase," says Bark.
As for pricing, Brazilian ginger is priced between $28-$30/30 lb. box and that pricing is anticipated to strengthen given tariffs and the lower supply. Peru is slightly higher at $30-$34/box.
For more information:
Apanatche Bark
Pommer Comercio Internacional Ltda
[email protected]
www.pommerfreshfoods.com
