In Europe, ginger prices are skyrocketing. "This is up or in short supply everywhere, something that's been going on for over a month now. We expected shortages, but the current €45 to €50 price level is extreme," says Bert van Gelder of the Dutch company Sawari Fresh.
"The sometimes subpar quality is also making sales tricky. That applies to both Brazilian ginger, which we fly in, and Chinese ginger. China demands sky-high prices too. They have strong local demand, so some growers prefer not to take the export risk and rather sell locally."
"Despite these high prices, we sell good volumes every week. I don't see supplies increasing significantly soon, either. Ginger is making top dollar in China and only reaches Europe six weeks later. It's low season in Peru, with a lot of rain, so the harvest, of especially organic ginger, is limited," Bert explains.
"We already know Brazilian production will be much lower. As long as Chinese ginger remains so expensive, given that large volumes of Peruvian ginger won't be on the market until August, prices will undoubtedly remain high. A small advantage is that sea freight rates have fallen, especially from China and Peru."
Unlike ginger, the garlic market remains stable. "We'd expected slightly higher prices. Garlic is selling for between €15 and €18.50, depending on packaging and variety. Demand is stable with occasional lower prices. That's because some new license holders want to get rid of their garlic. Prices are expected to remain steady in China, and with the prospect of at least 15% less planted, market prices probably won't drop much further," Bert concludes.
