Peru has lost 80% of its European market share for ginger due to quality issues and competition from China. Demand is expected to decline but Jiahe Food Europe reports sales growth in other areas including sweet potatoes and turmeric.
In 2023, Peru experienced a substantial decline in its market share in Europe, losing approximately 80 percent. The demand for ginger is projected to decrease in the upcoming weeks, despite stable sales post-Carnival. Ralf Settels, managing director of Jiahe Food Europe GmbH, noted that warmer weather tends to reduce ginger demand. Additionally, quality problems resulting from premature shipment of the new Chinese ginger harvest have complicated procurement processes, causing significant transit delays.
Settels provided insights into the young ginger from China, likening it to new potatoes, emphasizing its delicate nature due to the skin forming only after harvest. Price adjustments occurred in response to lower-than-expected yields and quality issues. Initially offered at low prices in December, they subsequently aligned with the prices of older crops to offset processing costs. Currently, ginger prices remain almost stable.
The supply of Peruvian ginger is nearing its conclusion, exacerbated by reduced quality and demand. Settels revealed that many clients have transitioned to Chinese products, attracted by their larger tuber size. As a result, forecasts for early 2024 suggest modest volumes, leading to expectations of an early end to Peru’s ginger season by October. The longevity of this season indicates slower sales.
Settels noted the lack of alternative sourcing countries for quality ginger, highlighting that Thai ginger fails to meet European standards. Brazil’s supply concludes in December, while Nigerian and Ghanaian ginger is smaller in caliber. South African ginger primarily serves the domestic market, and efforts to locate viable suppliers in India have yet to yield results. Nonetheless, ginger and turmeric consumption remains consistently high in Germany and across Europe, sustaining growth since the pandemic.
In addition to ginger and turmeric, Jiahe Food Europe GmbH focuses on organic sweet potatoes, having shifted sourcing primarily to Portugal over the last two years. Recent deliveries of conventional sweet potatoes from Portugal have commenced, expected to last until May, when South African goods will be available until the new Portuguese harvest in August. Increased prices for sweet potatoes are attributed to decreased availability from the USA.
The management of Jiahe Food Europe GmbH reported robust sales growth across all product categories in 2024, having successfully acquired new customers within both the industrial and fresh food sectors.
In summary, the article highlights the significant challenges faced by Peru in maintaining its market share in Europe, particularly with ginger, which has declined by 80 percent in light of heightened competition from Chinese imports. Additionally, procurement issues and fluctuating prices have impacted the market dynamics. Jiahe Food Europe GmbH remains optimistic, reporting growth and expanding their customer base across various product categories, including organic sweet potatoes and turmeric.
Original Source: www.freshplaza.com
