Peru’s ginger market in Europe has suffered a decline, losing 80 percent of market share largely due to demand for Chinese products with larger tubers. Quality issues in the Chinese harvest have also impacted procurement. Conversely, Jiahe Food Europe GmbH has successfully focused on sourcing sweet potatoes from Portugal and has experienced growth across all product lines despite market challenges.
In 2023, Peru has faced significant challenges, losing approximately 80 percent of its market share in Europe. This decline is largely attributed to decreased demand for ginger, causing the market to shift towards larger tubers from China, which have become increasingly popular among consumers. Furthermore, issues with the latest Chinese ginger harvest have compounded difficulties for suppliers, leading to quality concerns and slower sales overall.
Ralf Settels, managing director of Jiahe Food Europe GmbH, indicated that immediate demand for ginger typically spikes after Carnival; however, prolonged sunny weather could diminish this requirement. He noted quality issues arising due to the premature shipping of the new Chinese harvest and delays in sea transport, resulting in transit times extending to about 60 days. Settels explained the fragility of young ginger, which resembles new potatoes as it is harvested without skin, and highlighted that adaptations in pricing were necessary due to lower yield expectations and high processing costs. Meanwhile, prices have stabilized recently despite ongoing market challenges.
Settels expressed that the supply of goods from Peru is tapering off, with many customers transitioning to Chinese products due to the larger tuber size leading to increased sales. This transition trend indicates a critical shift for the European market. Additionally, as the ginger season in Peru has slowed, forecasts for early 2024 indicated lower volumes than usual, raising concerns about upcoming supply gaps.
Moreover, Settels mentioned the lack of alternative sourcing countries for ginger, as Thai ginger fails to meet quality standards, and supply from Brazil concludes too early in the year. While Nigerian and Ghanaian produce is available, it is smaller in size compared to what the market demands. South African ginger primarily caters to its domestic market, and attempts to secure reliable suppliers in India have proved unsuccessful thus far. Despite these challenges in the ginger market, demand for turmeric, which is also sourced from Peru and China, remains high in European markets since the pandemic.
In addition, Jiahe Food Europe GmbH has shifted its focus to sourcing organic sweet potatoes, moving away from Israel and Spain to concentrate on Portugal. The first conventional yields from Portugal have recently arrived, with reassurance that these goods will be available until late May, followed by a seamless transition to supplies from South Africa until the next Portuguese harvest in August. Settels noted that prices have been rising moderately due to a decrease in availability from the United States.
In terms of overall performance, Jiahe Food Europe GmbH has reported a successful year, achieving customer growth across all product sectors. Settels remarked on the company’s successful outreach in securing new clientele in both industrial and fresh food market segments.
In summary, Peru’s ginger market is in decline, losing substantial market share in Europe as consumers increasingly favor larger Chinese tubers. Quality issues have plagued the ginger supply chain, necessitating adjusted pricing. Conversely, Jiahe Food Europe GmbH is successfully managing its sweet potato imports from Portugal while witnessing overall growth in sales across all product categories. The company remains committed to addressing current market challenges and adapting its sourcing strategies. Trade dynamics indicate longer-term shifts in supply preferences, with implications for both pricing and availability of ginger. As market participants navigate quality and sourcing issues, the trend towards larger tubers from China appears set to influence future ginger trade in Europe.
Original Source: www.freshplaza.com
