There are major shortages on this year's ginger market. "The Chinese crop is 40-50% lower than last year, and since there are so many market speculators, prices have doubled," begins Gerry Li of Vision Fresh in the Netherlands. "Chinese ginger is currently selling at €43-€45. The Brazilian season is about to be over, with prices between €43 and €45, the new crop will available in June again, while ginger from Peru is fetching €41 to €43. There’s hardly any organic ginger available at all."
Gerry Li, Vision Fresh
He adds that although customers have to get used to high prices, they are eventually accepted. "Everyone's in the same boat. The high costs mean margins are genuinely minimal. Last year was good, but this year's market is difficult and I expect it to remain challenging in the second quarter. There is simply less ginger available worldwide. However, in the summer, ginger consumption also drops considerably. It's not a salad vegetable. Winter is when demand truly peaks, and is particularly high for fresh ginger for tea," Gerry says.
Vision Fresh used to sell up a storm with garlic, pomelos, chestnuts, and nashi pears alongside ginger. These days, it focuses fully on ginger. For packaging - a special company division - the company started renting a second location this year. "Clients love that we specialize in ginger. Every year we import more than 20,000 tons of ginger to the Netherlands, where we've been active for 12 years. And, with our packaging company, we have every opportunity to provide European retail and wholesale buyers with ginger in all kinds of packaging."
"Thanks to our partners, we've had a stable supply even during these past few tricky months," Li continues. Vision Fresh gets about 60% of its annual ginger supply from China, supplemented with ginger from Peru, Brazil, Costa Rica, and Guatemala. Ocean freight rates from China have fortunately returned to a pre-Corona level but are still sky-high from South America. "From China, you now pay $1,700 to $2,000 per container; from Brazil, it's $4,000, and Peru, as high as $6,000."
Vision Fresh, however, does not want to give ginger cultivation a try in the Netherlands or elsewhere in Europe. "With our ginger know-how, it's possible, but I think it costs far too much,” Gerry explains. “Though local productions are increasing, I expect it to always be a small market. I'd rather see cultivation increasing in South America and Africa." A new development is that Rida Trade will soon be able to provide laser-branded ginger. "We'll be installing that machine soon. There's not a huge market for this, but it's a nice addition for specific customers."
For more information:
Gerry Li
Vision Fresh
668 ABC Westland
2685 DH, Poeldijk, NL
Tel: +31 (0) 174 700 205
Mob: +31 (0) 640 215 300
info@visioninternational.nl
www.visionfresh.nl/