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GLOBAL MARKET OVERVIEW GINGER

The Netherlands reports a ginger market under pressure from oversupply, with prices sometimes even below cost. Demand is recovering after summer, but prices remain far from sustainable levels. In Italy, sales are stable but prices are very low, with the market collapsing since June due to heavy volumes from Brazil and China. Traders expect weakness to continue at least until October.

Germany is seeing a recovery after a quiet summer, though prices remain below last year amid freight delays through the Suez Canal. Demand from industry is rising, but growth appears to be slowing. In France, demand is improving with the school year restart, but high volumes continue to put pressure on prices. Supplies have shifted, with reduced availability from Peru and higher flows from Brazil and China.

© Martijn van Nijnatten | FreshPlaza.com

In North America, U.S. tariffs are reshaping trade flows, reducing Brazilian shipments into the country. Peru is supplying more, while China continues steady exports. South Africa faces low prices due to imported ginger, though growers note the first three quarters have been good. With expanded acreage and replanting underway, recovery is expected by November.

In China, production is up by 15% thanks to favourable conditions, and export prices to Europe are slightly lower than last year. However, organic exports continue to decline as Peru dominates that segment.

Netherlands: Oversupply keeps prices low despite rising demand
The European ginger market is currently facing a significant oversupply. "We're slowly coming out of what is traditionally a challenging summer period. During these months, consumers tend to prefer summer fruits over our products. Substantial volumes of ginger have arrived, and continue to arrive- from Brazil, China, and Peru, which has put considerable pressure on prices. In some cases, it's even being sold below cost," says a Dutch importer.

He notes that demand is now starting to recover after the quiet summer months. "Retailers are currently purchasing more than initially planned. However, due to the large availability of products, often of lower quality, I don't expect prices to return to a healthy or sustainable level anytime soon. A standard box of Brazilian ginger (13.6 kg) is currently selling for around €17.00, while a carefully selected box of Chinese ginger (12.5 kg) sells for approximately €23.00."

According to the importer, the days of speculative ginger imports are over. "The risks in the trade have become too high. In addition to pricing pressure, there are food safety concerns, such as MRL exceedances or contamination with the Ralstonia bacterium. The open market offers little room for players without programs or a clear quality strategy."

Italy: Oversupply and weak demand pressure market
A major trader at a wholesale market in northern Italy reports stable ginger sales, though prices remain low at around €2.30–2.40/kg. "There is a lot of ginger on the market, and most of it comes from Brazil. It cannot be ruled out that US tariffs are causing more ginger than usual to pour into Europe, which is why prices are trending downward." The wholesaler continues to sell about 70 crates of ginger per week. Brazilian ginger arrives in 13.5-kilogram crates, while Chinese ginger generally comes in a variety of sizes, such as 5-, 10-, or 13-kilogram crates. Some importers reprocess the ginger to supply smaller packages for small fruit and vegetable shops or the Horeca channel.

Another wholesaler in northern Italy confirms that the ginger market has suffered a significant collapse since June, with very low prices for Chinese, Brazilian, and Thai ginger at the end of August and beginning of September. "Currently, Brazilian ginger in 13-kilogram boxes sells for around €15, while Chinese ginger in 10-kilogram boxes costs an average of €1.70 per kilogram. However, Chinese purchase prices have risen significantly over the last three to four weeks (from €13.90 to €16.70–€17.60 per 10-kg box) as their season is coming to an end. The Brazilian season is also coming to an end. I expect the market to remain very weak until at least October due to scheduled arrivals at low prices and the need to sell off summer stocks. Reasons for this collapse include an abundant supply from China and Brazil, normalization of Chinese exports post-COVID, a decline in summer consumption due to the weather, and general market saturation, similar to what happened with avocados or Egyptian sweet potatoes."

Germany: Prices remain low as logistics delays persist
The ginger market appears to be recovering after a very quiet summer. Market prices are currently below those of the same period last year, which was already foreseeable due to abundant harvest forecasts. The sea freight situation remains an important factor: because of the problems in the Suez Canal, total transit times from China, including loading, unloading, and customs clearance, have increased to as much as 60 days. The so-called northern route (along the Arctic) is not an alternative for ginger importers, as the main volumes are needed primarily in winter. Nevertheless, it could become a game-changer by putting pressure on Egypt to fully reopen the Suez Canal, the report notes.

At the procurement level, Peru has lost market share after many buyers switched to China and Thailand in the wake of severe bottlenecks in the spring, and no longer wanted to switch back to Peru due to the larger calibers available from both countries. Meanwhile, the Brazilian campaign, which usually lasts until the end of the year, is now gradually gaining momentum.

Ginger is establishing itself as a promotional product, especially in Germany, even during the summer. Interestingly, total sales volumes in Germany are significantly higher than in neighboring countries, while retail prices are slightly lower in relative terms. Although demand from industry continues to rise, the growth curve appears to have flattened somewhat, according to reports.

France: Demand rises with school year restart
The French ginger market currently offers a wide range of products, dominated by Peruvian, Chinese, and Brazilian origins, supplemented by occasional volumes from Europe and imported organic produce. There is a large volume of ginger on the market, which is putting pressure on prices. Demand in France is picking up again with the start of the new school year, driven by retail consumption and industry use in beverages and wellness products. Sales are reported to be flowing smoothly.

Compared to the 2024 season, the 2025 supply is characterized less by surplus than by a shift in flows. Peru experienced several months of contraction, temporarily limiting availability, while Brazil and China increased their exports to Europe.

North America: Supply shifts as U.S. import duties alter flows
Ginger supply from Brazil is set to decline as it is planting season. While planting takes place mainly in September, some ginger is still being exported. Overall, there is less supply from September to November.

Peru currently has a stronger ginger supply, though as the country moves into production of other crops, including avocados and mangoes, some exporters are shifting their focus to shipping more of those commodities instead of ginger.

However, with the 50 percent tariff on Brazilian products in the U.S., dynamics are changing. Growers and shippers are waiting to see if Europe will demand more Brazilian product this season. This means some importers supplying the U.S. may pivot from sourcing ginger from Brazil to Peru. Because of the tariff, there will be less Brazilian ginger entering the U.S. from September to December.

China continues to ship ginger steadily. All of this follows the slower demand months of July and August. In terms of pricing, Brazilian ginger is currently priced between €26.00 - €27.90 per 13.6 kg box, while Peruvian ginger sells for €27.90 - €31.60 per box.

South Africa: Prices low, but local growers see recovery ahead
The ginger market is under pressure, with prices fairly low due to an abundance of imported ginger from China, Thailand, and Brazil. Prices range from €2.40 to €2.90 per kilogram, described by a trader as "middle of the road prices," and sales are moving fairly slowly.

That said, it has been a very good season overall, according to a ginger grower reflecting on the first three quarters of the year. He supplies a retailer, which he says is the only one actively supporting local ginger farmers. Ginger growers are currently replanting, with acreage under ginger in South Africa expanding. Rhizomes not planted are often sold fresh. By November, growers expect the ginger market to recover. It appears that Mozambique is too hot for successful ginger production and is not likely to replace South African output.

Increasingly, ginger is traded off the wholesale markets as retailers buy directly from importers and pre-packers. "Speculators on ginger mess up the [wholesale] market big time," comments a market agent. He adds that South African-grown ginger has a sharper taste than imported ginger. "The imported ginger is thicker, giving the consumer the illusion of more value for money, but it doesn't have the flavour of the local ginger."

China: Higher yield, but organic share continues to fall
This year, Chinese ginger did not experience extreme weather conditions such as floods or droughts, resulting in a higher yield. Production is expected to increase by approximately 15% compared to last year.

As in previous years, China's main export destinations for ginger remain North America, Europe, and Southeast Asia. The current export price to Europe is about €1,140 per metric tonne (FOB), slightly lower than last year. Organic ginger accounts for approximately 20% of total exports, but this share has been declining year by year. Peru continues to dominate the international market for organic ginger. This is due to the relatively high price of raw materials in China, which has weakened its competitiveness.

Overall, freight costs this year are lower than last year. The recently implemented trade tariffs between China and the U.S. have had some impact on Chinese exports, though the effect has been very limited.

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