Peruvian ginger production is increasing due to expanded planting areas but is challenged by phytosanitary issues and competition from Brazil. These factors are expected to lower market prices despite sustained demand. Key strategies are being implemented to address potential risks from Ralstonia, and companies are exploring new market opportunities, especially in the United States.
Peruvian ginger faces phytosanitary challenges impacting its global competitiveness. An expansion of production coinciding with competition from Brazil results in mixed sector expectations. The stability of the market hinges on how Peruvian producers navigate these difficulties.
The 2024 growing season, characterized by material shortages and high prices, is set for transformation due to a 40 to 50% increase in planting area, according to Grober Galindo of La Campiña. “The 2024 season ended early due to low sowing and the presence of Ralstonia, which generated fear in exports to Europe,” he explained, noting that previously high prices encouraged producers to expand without recognizing the shortage’s contributing factors.
This increase in planting area suggests a greater supply of ginger that may lower prices. Currently, a 30-pound box commands $38 in the U.S., an unusually elevated figure for this period. However, increased supply and Brazilian imports are anticipated to drive prices down. “The market is already monitoring the production volume in Peru. Buyers in Europe and the United States know the numbers and adjust their purchases according to supply,” Grober stated.
The primary challenge for the Peruvian ginger industry is the Ralstonia bacterium, raising issues in the European market. Grober emphasized, “It poses a high risk. It can appear in the product’s very early stages and, if detected in a container, it must be incinerated, which represents a great loss for exporters.” In response, Peruvian companies are enhancing sanitary controls with organizations like Senasa and INIA to avert such outbreaks.
In spite of these obstacles, the demand for Peruvian ginger remains robust. “We are exploring new opportunities in the United States and expanding our product range, including fresh ginger, IQF, and ginger juice. However, exports to Europe remain a challenge due to this market’s strict phytosanitary standards,” he added.
The expansion of Peru’s ginger crop and competition from Brazilian suppliers are poised to impact market prices significantly. As producers address phytosanitary concerns and adapt to higher planting areas, the future of Peruvian ginger exports remains uncertain but holds potential opportunities. Ensuring quality and maintaining strong market demand will be essential for sustained success in international markets.
Original Source: www.freshplaza.com
