Increased Maturity Allows for Sea Shipments to the U.S.
Peru’s ginger season, which began in May, has reached a significant milestone. Until now, ginger shipments to the U.S. were exclusively by air due to the product’s lack of maturity for the long sea journey. “Finally, we’re getting enough maturity to ship by boat,” says Roger Zardo with JLZ Produce. “Our first boat will hit the water on Saturday and arrive on the West Coast in about two to three weeks,” he added.
Early Start and Growing Yields
This year’s ginger shipments from Peru commenced earlier than anticipated. Growers were eager to start the new season because the previous season ended prematurely. As fields mature, yields are increasing, indicating a robust season ahead. Despite a reduction in acreage last year, this year’s increased acreage signals better production, although the season is expected to be short. “I believe availability will be very limited by January or February,” Zardo remarked, attributing the high demand to the health benefits of ginger.
Sustained Demand and Quality Assurance
The demand for ginger and turmeric surged during the COVID-19 pandemic and has continued to grow, particularly for juice drinks and fresh ginger. JLZ Produce plans to supply Peruvian ginger as long as it is available, switching to Mexican and Costa Rican ginger from February to May to bridge any supply gaps. Zardo is optimistic about the quality of Peruvian ginger, citing favorable weather conditions during the growing season.
Pricing Dynamics
The price for organic ginger currently stands at approximately $75 – $80 per 30 lb. case. While this might seem high compared to historic lows, there are underlying reasons for the pricing gap. Previously, an overabundance of ginger drove prices down. Additionally, Peruvian ginger growers face competition from a significant informal market within the country. “The difference between the informal and formal market in Peru can largely be separated by how they do or don’t support illegally employed workers, their regard for food safety, and their detailed or lack of traceability,” explained Zardo. This discrepancy results in a wide price range for a 30 lb. case of ginger, varying from $40 to $80 in the same market.
