Peru has lost 80% of its European ginger market share in 2023, attributed to smaller tuber sizes and quality issues with the Chinese harvest. Demand for ginger is expected to decline, while growth in customer acquisition has been noted at Jiahe Food Europe GmbH, which is also focusing on sweet potatoes from Portugal.
In 2023, Peru experienced a significant decline, losing around 80% of its market share in the European ginger market, largely attributed to the inferior tuber sizes compared to competitors. Ralf Settels, managing director of Jiahe Food Europe GmbH, indicated that demand for ginger typically peaks right after the Carnival season, but is expected to drop if warm weather continues; historically, this correlates with a decrease in ginger sales. Previously, quality issues arose due to the premature shipment of this year’s Chinese harvest, compounded by extended transit times of 60 days due to seaport delays, making market conditions challenging.
Settels explained that the young ginger from China, harvested without skin, is delicate, and the skin thickens with time in storage. Initially, low prices were offered for the new crop in December, but quality problems led to adjusted prices to align with older crop levels, addressing losses and elevated processing costs. As of now, prices have stabilized as demand patterns evolve.
As shipments from Peru dwindle due to weak quality and sharp declines in demand, many customers have shifted to sourcing larger Chinese tubers, which have shown promising sales performance. This trend is anticipated to persist into early 2024, while volumes are projected to remain modest, causing early seasonal closure.
Alternatives for ginger sourcing remain scarce, as Thai ginger fails to meet European quality standards. Brazil finishes its season by December, and while Nigerian and Ghanaian offerings exist, they tend to be smaller in size than required. South African ginger primarily supports local demand, and efforts to find reliable suppliers in India have yet to yield results. Despite these challenges, demand in Germany and Europe has held steady post-pandemic, with both the industry and fresh markets showing continued growth.
Besides ginger and turmeric, Jiahe Food Europe GmbH focuses on importing organic sweet potatoes, recently shifting supply to Portuguese sources after exiting partnerships with Israel and Spain. Conventional sweet potatoes from Portugal are expected until late May, followed by South African imports. Settels noted that the current price level is rising due to decreased availability from the U.S., with another increase reported in early March.
In summary, Jiahe Food Europe GmbH has successfully navigated 2024, achieving growth across all product lines and expanding their customer base in both industrial and fresh sectors. This highlights the company’s resilience and adaptability in a fluctuating market.
In conclusion, Peru has significantly lost its European market share for ginger due to quality issues and consumer preference for larger Chinese tubers. The changing conditions have led to increased prices for ginger and a shift to alternative sourcing, though challenges persist in finding suitable substitutes. Meanwhile, Jiahe Food Europe GmbH has expanded its operations in sweet potatoes and has experienced overall sales growth, indicating a positive outlook despite prevailing market challenges.
Original Source: www.freshplaza.com
