Peru’s ginger sector contends with phytosanitary challenges and increased competition from Brazil, which may affect export competitiveness. A significant expansion in planted areas this year is expected to lead to lower prices after a season of high prices influenced by a shortage. Producers are implementing stricter controls to combat Ralstonia risks and continue exploring opportunities in diverse markets.
The Peruvian ginger industry is currently experiencing significant challenges due to phytosanitary issues that may hinder its competitiveness in international markets. The expansion of ginger cultivation and competition from Brazil have created a complex outlook for the sector, which will largely depend on how producers manage these difficulties.
The 2024 agricultural season initially faced shortages and elevated prices; however, this year promises a transformative shift with an increase in the planting area of 40 to 50%. Grober Galindo, representing La Campiña, emphasized that the previous season ended prematurely due to low sowing levels and the presence of Ralstonia, which raised export concerns toward Europe. Many producers expanded their cultivation areas without anticipating that last year’s high prices were largely a response to the existing shortage.
As planted areas increase, greater ginger availability is expected, leading to a potential decrease in prices. Currently, the cost of a 30-pound box stands at $38, which is unusually high for the season. Nevertheless, with the anticipated rise in supply and increased imports from Brazil, prices are likely to decline. “Buyers in Europe and the United States are already adjusting their purchases based on production volumes in Peru,” Grober noted, highlighting Brazil’s competitive edge in logistics and mechanization, which reduces both costs and delivery times.
A significant concern for the Peruvian ginger industry is the Ralstonia bacterium, which poses notable risks in the European market. Grober pointed out its danger, stating, “If detected in a container, it must be incinerated, which represents a great loss for exporters.” In response to this challenge, Peruvian enterprises are enhancing their sanitary controls in collaboration with organizations like Senasa and INIA. They are also forming associations to promote better agricultural practices that align with international quality standards.
Despite these challenges, demand for Peruvian ginger continues to be robust. Grober mentioned ongoing efforts to explore new markets in the United States and diversify products, which now include fresh ginger, Individually Quick Frozen (IQF) products, and ginger juice. However, he acknowledged that exporting to Europe remains difficult due to stringent phytosanitary regulations imposed by this market.
In conclusion, the Peruvian ginger industry faces significant challenges, particularly due to phytosanitary concerns and competition from Brazil, which may affect prices and export capabilities. Nonetheless, the anticipated increase in planting areas could lead to greater market availability, presenting both opportunities and risks. Producers are actively addressing these challenges through enhanced sanitary measures and collaboration, striving to maintain strong demand in both domestic and international markets.
Original Source: www.freshplaza.com
