Brazil ginger trade booms as maritime challenges plague competitors

In January, Espírito Santo state, the largest producer and exporter of ginger in Brazil, raked in $885.39 thousand from international sales of the root. This figure sets a record for the month, marking a staggering 114% increase compared to the same period in 2023. The conflict in the Red Sea caused by Houthi rebels created a window of opportunity. While the Chinese faced delays of up to 30 days to transport the product to Europe, exporters from Espírito Santo sent their cargo by air.

China is the world’s largest ginger producer, keeping exports going all year. However, the situation in the Red Sea posed challenges for Chinese exporters, who could not use the maritime route through the Suez Canal.

“Chinese ships had to go around Africa, increasing freight costs and delaying deliveries. As a result, Brazilian ginger, even when unripe, found a market and fetched a good price in Europe,” says agronomist Galderes Magalhães de Oliveira, an extensionist at Incaper (Capixaba Institute of Research, Technical Assistance, and Rural Extension).

The chart below shows the top destinations for maritime exports of ginger departing from Brazil throughout the last year. The data is from DataLiner,

Ginger Export Top Destinations | 2023 | TEUs

Wanderley Stuhr, a native of Espírito Santo and the country’s largest ginger exporter, explains that when there is enough demand, they usually ship products harvested in previous seasons during this time of year. However, in 2023, a year of high prices, there was no stock left, so the only option was to harvest off-season and ship the still-green ginger – “baby ginger” due to the extra care taken during harvesting and processing – by air.

“I exported a smaller volume this year, but at a much better price. In January, we managed to get $45 per box (13.6 kg). Now, Chinese ginger has started to arrive in the European market, and the price has dropped to $35,” he explains.

Source: Globo Rural

Click here to read the original article: https://globorural.globo.com/negocios/noticia/2024/02/de-aviao-espirito-santo-dribla-concorrencia-e-dobra-receita-com-exportacao-de-gengibre.ghtml

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