Peru’s ginger industry is navigating phytosanitary challenges and aggressive competition from Brazil. Increased planting area is expected to raise supply and lower prices, impacting market stability. Collaborative efforts among producers are needed to meet international quality standards and maintain export demand.
Peruvian ginger faces significant phytosanitary challenges that could impact its international competitiveness. Increased planting and competition from Brazilian ginger are creating uncertain expectations within the industry. The market’s stability will hinge on how effectively Peruvian producers manage these issues.
The 2024 season saw high prices due to raw material shortages, but this year expects a 40-50% increase in planting area, as stated by Grober Galindo of La Campiña. Last year’s high prices prompted producers to expand their cultivation without realizing the shortage was the primary driver of those prices.
With more planted areas, ginger availability is anticipated to rise, exerting downward pressure on prices. Currently, a 30-pound box is priced at $38 in the U.S. This price is expected to decrease as supply increases and more Brazilian ginger enters the market. Reportedly, “the market is already monitoring the production volume in Peru,” which influences buyer purchasing strategies, according to Grober.
A critical hurdle for the Peruvian ginger industry is the Ralstonia bacterium, which raises concerns for European markets. Grober emphasized, “It poses a high risk” for exporters as detection in containers leads to incineration of the product, resulting in substantial losses. To counter this, Peruvian firms are enhancing sanitary controls and working with agencies like Senasa and INIA.
In spite of these challenges, demand for Peruvian ginger remains strong. Grober noted, “We are exploring new opportunities in the United States” and expanding offerings to include fresh ginger, Individually Quick Frozen (IQF), and ginger juice. Nonetheless, meeting the strict phytosanitary standards for exports to Europe continues to present difficulties.
Peru’s ginger sector faces competitive pressures from Brazil and phytosanitary issues impacting exports, particularly to Europe. However, an increase in planting area is anticipated to stabilize prices by boosting ginger supply. Collaborative efforts among producers and compliance with sanitary standards are critical for maintaining demand and enhancing market viability, especially in the U.S. market.
Original Source: www.freshplaza.com
