EastFruit reports a significant spike in global ginger prices over the past month, catalyzing an unprecedented demand for this once-exotic-now-regional staple. In Eastern Europe, ginger has notably become a central feature of the burgeoning tea culture and has expanded its presence in culinary and baking industries.
What are the reasons for the rapid rise in ginger prices worldwide? Industry experts pinpoint the critically low ginger yields in China and India as the primary cause for the dwindling Asian ginger reserves, leading to the sharp price uptick. With the new ginger harvest in China half a year away, the market has seen a sharp reaction.
For Chinese consumers, traditionally accustomed to ginger, the escalated prices have rendered it a luxury, causing a decline in its consumption.
The market may see some respite in June-July as the new Brazilian and Peruvian ginger harvests begin to circulate. Brazil is reportedly expanding cultivation areas to capitalize on the high global market prices. Nonetheless, significant price reductions are unlikely until China's new crop export commences, given Brazil's smaller export volume.
EastFruit data indicates that China exports 400 to 500 thousand tons of fresh ginger annually. Thailand and India, ranking second and third in global exports, trade nearly five times less each. Peru, Nigeria, Brazil, and Nepal also stand as notable exporters.
The USA, Bangladesh, Pakistan, the Netherlands, the UAE, and Japan lead in fresh ginger imports, with the Netherlands primarily re-exporting. Germany is Europe's largest ginger consumer, with an annual intake of about 30 thousand tons. Ukraine, importing roughly one and a half thousand tons mainly from Brazil, China, and Peru, ranks 50th globally in ginger imports.
Source: east-fruit.com