The global ginger market is currently facing challenges, with uncertainties and supply shortages occurring in several regions. As the ginger season turns, traders are faced with price volatility and quality changes, resulting in unpredictability in the Dutch market. On the other hand, Germany is facing a shortage of ginger due to reduced production and unsatisfactory quality in China, while supplies from Brazil and Peru are also expected to be affected next. However, due to the discovery of solanacearia, some of the ginger produced in Peru had been destroyed when it arrived in Germany. In Italy, lower supply pushed up prices, with the market focused on the arrival of large quantities of Chinese-produced ginger to stabilize the market. Meanwhile, South Africa is facing a severe shortage of ginger caused by Cyclone Freddy, with prices soaring and supplies uncertain. In North America, the picture is mixed, with Brazil and Peru supplying the market, but concerns remain over possible future reduced shipments, while China’s ginger exports are unclear.
Netherlands: Uncertainty in the ginger market
At present, the ginger season is in the transition period from old ginger to new ginger. ”It creates uncertainty and people don’t give prices easily. Sometimes ginger looks expensive, sometimes not so expensive. Chinese ginger prices have been under some pressure, while ginger from Peru and Brazil has been fairly stable in recent weeks. However, the quality varies a lot and sometimes it does lead to a price difference of 4-5 euros per case, “said a Dutch importer.
Germany: Shortages expected this season
One importer said the German market was currently undersupplied. “The supply in China is lower, the quality is generally less satisfactory, and correspondingly, the price is a little higher. The Brazilian export season around the end of August to the beginning of September becomes particularly important.” In Costa Rica, the ginger season is over and only a small amount can be imported from Nicaragua. Importers added that it remains to be seen how Peruvian production will develop this year. “Last year they reduced their acreage by about 40 percent and are still fighting bacteria in their crops.”
He said there had been a slight increase in demand since last week, probably due to cooler temperatures in Germany. Cold temperatures generally boost sales, he stressed.
Italy: Low supply pushes up prices
Three countries are the main ginger exporters to Europe: Brazil, China and Peru. Thai ginger is also appearing in the market.
Until two weeks ago, ginger was very expensive. A wholesaler in northern Italy says there are several reasons for this: the climate in the producing countries and, most importantly, the Chinese epidemic. From mid-to-late August, things should change: prices of origin are now falling. “Our price dropped from $3,400 per ton 15 days ago to $2,800 on July 17. For a box of 5 kg of Chinese ginger, we expect the market price to be 22-23 euros. That’s more than 4 euros per kilogram. “Domestic demand in China has fallen, but there is still inventory available as the new production season starts between December and January.” The price of Brazilian ginger is also high: €25 FOB for a 13kg box and €40-45 when sold in Europe.
Another operator from northern Italy said that ginger entering the Italian market is less than usual, and the price is quite expensive. Now the products are mainly from South America, and the price is not cheap. Shortages of ginger produced in China usually normalize prices. In the shops, you can find regular Peruvian ginger for 6 euros/kg or organic ginger for 12 euros/kg. The arrival of large quantities of ginger from China is not expected to lower the current price.
Post time: Jul-21-2023