Peru has lost 80% of its European market share due to quality issues in ginger. Demand is expected to decline as warmer weather approaches, despite stable sales after Carnival. Jiahe Food Europe GmbH has shifted to sourcing Chinese ginger and Portuguese sweet potatoes, reporting growth across its product lines. Challenges persist in finding alternative ginger suppliers.
Peru has experienced a significant decline in its market share within Europe, losing approximately 80 percent this year. Ralf Settels, managing director of Jiahe Food Europe GmbH, forecasts a decrease in ginger demand in the coming weeks. Although sales remain stable post-Carnival, high temperatures could lead to a considerable decline in demand. Compounding the issue are procurement difficulties where the early harvesting of the new Chinese ginger crop resulted in quality problems and extended transit times due to seaport delays.
The Chinese young ginger, comparable to new potatoes, is noted for its delicate nature as it is harvested without skin; this texture changes over time in storage. Price adjustments have been necessary due to lower-than-expected yields and increased processing costs. Initially, new crop products were priced low, but adjustments have aligned them with older crop prices to offset losses.
As the supply from Peru wanes due to inferior quality and dwindling demand, Settels highlights that many customers have transitioned to Chinese ginger, which is larger and more appealing to consumers. The trend is increasingly favoring Chinese ginger across Europe; early 2024 forecasts predict modest supply volumes, suggesting a potential end to the season earlier than anticipated.
Lack of alternative sourcing countries continues to be a pressing issue for ginger supply. Thai ginger fails to satisfy European quality standards, while Brazil’s supply concludes in December. Other sources like Nigeria and Ghana provide even smaller tubers, and South Africa mainly caters to domestic requirements. Efforts to procure ginger from India have also proven unfruitful. Meanwhile, ginger and turmeric consumption in Germany and Europe remains stable and gradually increasing since the pandemic.
In addition to ginger and turmeric, Jiahe Food Europe GmbH focuses on importing organic sweet potatoes, having shifted its sourcing to predominantly Portuguese goods after discontinuing imports from Israel and Spain. The initial shipments from Portugal have recently arrived and are expected to last until May, transitioning to South African produce until the new harvest in August. The rising prices are attributed to lower sweet potato availability from the United States.
Jiahe Food Europe GmbH has reported successful sales growth in 2024 across all product categories, with an expansion of their customer base in both industrial and fresh market sectors, highlights Settels.
This article outlines the recent challenges faced by Jiahe Food Europe GmbH, particularly concerning Peru’s declining market share in Europe and issues with ginger demand and quality. It emphasizes the transition to Chinese ginger due to superior tuber quality and whether alternative sources can meet European standards. The company has also successfully pivoted to Portuguese sweet potatoes amid rising prices. Overall, despite challenges, Jiahe reports growth in customer acquisition and sales across several product areas.
Original Source: www.freshplaza.com
