WORLDWIDE GINGER SUPPLY TIGHT FOR THE NEXT 5 MONTHS

Peruvian ginger supply is already drying up Freshplaza.com February 2, 2024

The ginger market is currently facing challenges, primarily attributed to a significant decrease in production from Peru, a major player in the ginger industry. According to Roger Zardo of JLZ Produce in California, low prices for Peruvian ginger over the past three years have led to an unsustainable situation for farmers, prompting them to reduce the amount of ginger they plant and harvest. “This, coupled with a still increasing demand for organic ginger, has created the issues we are seeing in the ginger industry currently,” Zardo says.

Production gap
“The challenges in the ginger market appear to be caused by several factors,” Zardo explained. Traditionally, the Peruvian ginger production gap occurs in late February or March, but this year, supply issues are emerging much earlier, even before January has ended. The onset of the rainy season in Peru is contributing to harvesting difficulties as well as the limited supply planted as noted earlier. “Due to these issues, ginger will continue to be tight, gapping entirely by the end of February,” Zardo anticipates. This situation however, is not limited to North America. “In the past 10 days, I’ve received more phone calls from ginger importers in the Netherlands than I’ve received my entire career and I’ve been in the organic produce industry since 1996,” he said.

Next season
For the upcoming Peruvian ginger season starting in in June, there are signs that that there will be an improved supply. More acreage has been planted, and therefore an expectation of more available organic ginger. And while this increased planting will be helpful for the industry, there will still be lingering effects of the challenges faced the last few years, such as low prices and high demand, that will likely lead to another gap in production late season.

While Peru is the main supplier of ginger to the US, Mexico’s Pueblo region started up early December and is usually in the market until late March, April. “We rely on both countries, as combined, they allow us to offer organic ginger year-round. However, strong demand will swallow all of the ginger out of Mexico before the end of April and I expect a two to three-week gap until the new Peruvian season starts” notes Zardo.

High prices
The increased supply, low prices, and differences in standards in Peru have led to both limited organic ginger availability as well as significant inconsistencies in pricing. “These inconsistencies, born out of informal vs formal workforces in Peru and the depth of audits and food safety documents, create an unfortunately large gray area for pricing.” Despite the current higher price, the industry is still unable to meet the entire demand, showcasing the complexity of supply and demand dynamics in the organic ginger market.

New packaging.

Plastic-free packaging
JLZ recently launched a plastic-free retail pack for its 3lb combo pack of organic ginger and tumeric available through Earl’s Organic. “I am a big fan of getting plastic out of the environment and this packaging is all biodegradable, with a cellulose window,” shared Zardo. “Our packaging is bright colored and eye catching for consumers, plastic free and provides another level of comfort for those who have moved to packaged vs bulk goods post covid. It essentially checks all of the boxes.” Juicing has grown in popularity post-covid with people really taking control of their own immunity and general health. “It’s the perfect size for your weekly juicing needs.”