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“Peru’s ginger production 20% lower, prices are going to be higher”

The only way ginger prices are likely to continue going is up, as supply from Peru during the second half of 2024 is predicted to be around 20% lower. This is due to the unfavourable climate, that has caused bacterial rot in ginger plantations. Antonio Méndez, Sourcing Manager LATAM from Only Bio Perú SAC, warns "The ginger production this season from June to December 2024 is going to be about 20% less than last year. This is mainly because of the El Niño-situation: warm temperatures in the 'selva' ecosystem in Perú, with an intense rainy season."

In the middle: Antonio Méndez, Sourcing Manager LATAM from Only Bio Perú SAC with ginger growers in Peru.

This he says led to the bacterial rot in their ginger plantations. "Warm weather plus rain caused an intense development of Ralstonia solanacearum. This bacterium causes a disease called "bacterial rot". This disease is a problem because some countries have already sent a warning to Peruvian exporters. In addition, excessively wet soils stops the development of ginger causing a lack of oxygen; and note that Pichanaki-Satipo area has clay-loam soils, which are soils that retain water very well," explains Méndez.

The result is the expected lower production, which follows on last season's struggles. Peru's ginger quality, with about 60% of organic production, is of higher quality than that of China and India. Markets are willing to pay good prices for the Peruvian product. While some other producers have started airfreight of the young ginger to the US, Méndez says they prefer sea shipments, "because we care a lot of the carbon footprint."

Méndez says they also expect pricing to trend and remain higher. "In terms of pricing, the Peruvian ginger is going to be definitely high. We are now facing an early season with prices around USD 2,00 per kilo FOB, but Peruvian exporters are only shipping to the USA and near destinations, because there are not so much farms ready to harvest. Immature ginger is characterized by pink tips - baby Kion."

The company in Spain is Only Bio SL. They have a spinoff company in Perú called Only Bio Perú SAC. "We have farms of ginger in Junin department, near La Merced, Chanchamayo. We have 29.5 hectares of Has with organic and GlobalGAP certification, and we work with a base of nine growers."

He says even the young ginger is in big demand in the US market. "Another point to have in mind is that there is more interest this year in Kion because of the good results of last year. To get the product will be a fight," concludes Méndez.

For more information:
Antonio Méndez
Only Bio Perú SAC
Tel.: ESP (+34) 622 933 328 PER (+51) 970 538 904
Email: [email protected]