Ginger Prospects in Peru 2023

Peru Paradise Realty is dedicated to selling affordable land in Junín, in Satipo Province. We are glad to announce that more than 90% of the Peruvian ginger is grown in the central jungle of Junin, as the provinces of Chanchamayo and Satipo have the edaphoclimatic conditions to produce organic high-quality ginger, according to the Ministry of Agriculture and Irrigation of Peru. This is a great opportunity for land owners or foreigners who are looking to invest in the ginger and tumeric export business.

In 2021, Peru consolidated itself as the world's third-largest ginger supplier. 2020 represented a before and after in Peru's ginger production. The high international demand for this food promoted the sowing of ginger in the country which led to an increase in the production volume last year.

Despite this increase, the total value of exports fell by almost 13%. So far in 2022, the price on the international market hasn't recovered. In fact, between January and September, the value exported fell again by 20% over the same period last year." The price remains at almost 1.25 dollars per kilo and still allows to cover production costs," stated Jorge Chang Palacios, manager of JCH Agroexportaciones. This price, however, corresponds to organic ginger, a category that allowed Peru to gain a competitive advantage over Brazil and China (large producers of conventional ginger), especially in Europe."However, more than 50% of the Peruvian ginger that is being harvested in some areas will not meet organic farming standards. That's why we're asking the National Agrarian Health Service (Senasa) to carry out training and field visits to take care of our competitive advantage," Chang stated.

Despite this development, 2023 could be a good year for Peruvian ginger. According to Chang, Chinese production is expected to decrease by more than 50% due to climate effects, while Brazil's production is expected to fall because of the decrease in prices. "In fact, this could be an opportunity for Peru to enter new markets,” he said.A month after the end of the ginger planting campaign, producers in the central jungle do not rule out expanding their installed areas.

For example, JCH Agroexportaciones, which in 2020 led ginger shipments with a 15% share, went from 20 hectares to almost 100 hectares for the new campaign. In addition, the company will complete its production with ginger from the farmers with whom it has an alliance, who will also increase their production.