This article discusses the significant decline of Peru’s market share in Europe, as well as the expected decrease in ginger demand. It highlights procurement challenges, the dynamics of ginger pricing and sourcing, and the ongoing success of Jiahe Food Europe GmbH in expanding their product offerings and customer base.
This year, Peru has experienced a significant decline, losing approximately 80 percent of its market share in Europe. Demand for ginger is projected to decrease in the coming weeks, primarily because ginger typically sees heightened demand following Carnival. Ralf Settels, managing director of Jiahe Food Europe GmbH, noted that sustained warm weather could further suppress demand due to historical trends.
Challenges in procurement have also arisen; the new Chinese ginger harvest faced quality problems as shipments were made prematurely. Furthermore, delays at seaports contribute to an overall transit time of about 60 days, complicating the logistics for market participants. Thus, the current situation within the market remains challenging.
The young ginger marketed from China serves as a delicate product, somewhat akin to new potatoes, with the skin developing post-harvest in storage. Initial low prices in December were impacted as the yield per container was lower than anticipated, prompting adjustments to align prices with older crop levels to mitigate losses and processing costs. Presently, prices have stabilized, yet market dynamics remain fluid.
Peru’s integration into the European market has been marred by diminishing quality and declining demand. By early 2024, many clients have pivoted to larger Chinese tubers, yielding higher sales. Industry forecasts suggest modest volumes may continue into the following year; thus, March’s survival indicates sluggish sales.
While ginger sourcing alternatives are limited, Settels pointed out that Thai ginger does not meet European standards, and Brazilian production is typically exhausted by December. Although there are smaller African varieties and ginger from South Africa, which predominantly serves the local market, finding dependable suppliers in India has thus far proved unsuccessful. Meanwhile, ginger and turmeric consumption across Germany and Europe has remained robust post-pandemic, with upward trends evident in both sectors.
In addition to ginger and turmeric, Jiahe Food Europe GmbH imports and distributes organic sweet potatoes. The company has shifted its sourcing mainly to Portuguese products while discontinuing business with suppliers from Israel and Spain. They anticipate the availability of Portuguese goods until the end of May, transitioning seamlessly to South African produce until the Portuguese harvest resumes in August. This longevity is attributed to investments in storage technology amid a milder climate. Currently, sweet potato prices are high and slightly increasing due to diminished supplies from the USA, as evidenced by recent price adjustments in March.
Reflecting on the year, Ralf Settels highlighted sales growth across all product sectors at Jiahe Food Europe GmbH. The company has successfully expanded its customer base in both industrial and fresh food markets, indicating a positive trajectory for 2024.
In summary, Peru’s ginger market share has drastically diminished in Europe this year, down by 80 percent, largely due to quality and market dynamics. Concurrent procurement challenges and shifting demand towards Chinese tubers hinder traditional supply sources. Jiahe Food Europe GmbH continues to navigate this landscape while expanding its offerings in sweet potatoes and maintaining a growth trajectory in sales across multiple product categories.
Original Source: www.freshplaza.com
