Ginger Newsletter- April 2021

[ Source: Equipo de Selva Industrial S.A. ]
Ginger (Zingiber officinale), also known only in Peru as “kion”, is the rhizome (underground stem) of a plant, characterized by having a particularly spicy flavor. In addition to its demanded culinary use, the plant is one of the most widespread natural remedies in the world and appreciated for its properties.

Ginger Newsletter- April 2021
Fuente:  Equipo de Selva Industrial S.A.

The Ginger

Ginger (Zingiber officinale), also known only in Peru as “kion”, is the rhizome (underground stem) of a plant, characterized by having a particularly spicy flavor. In addition to its demanded culinary use, the plant is one of the most widespread natural remedies in the world and appreciated for its properties that help with good digestion, fight respiratory conditions, strengthen the immune system and reduce the possibility of heart attacks.

Ginger production- Peru

The sowing of ginger in Peru is centralized in the Junín region, specifically in the provinces of Chanchamayo and Satipo, which together represent a little more than 90% of the national production. The microclimates and fertile soils of Junín allow obtaining a high quality ginger, since they have the best ecological conditions for this type of cultivation.

The vegetative period of the “kion” lasts from 6 to 8 months, depending on the altitude of the production area, between 800 and 1,200 meters above sea level. The sowings of this product occur between August and September. Harvests begin in May and extend until April of the following year. However, the harvest peak occurs between June and December. It is in this window where the product meets the best standards of quality and ideal maturity for the foreign market. In addition, this peak is the only one of the year where the juice, pulp and puree industry can process ginger.

Regarding productivity, according to figures from the sector, the average is 18.7 tons per hectare, and with good certified seeds it has reached around 25 tons per hectare.

Regarding the evolution of the harvest areas, according MIDAGRI (Ministry of agrarian development and Irrigation of Peru), it is characterized by not being stable and varying according to supply and demand as evidenced in Illustration 3. If we look at the detail, the production of ginger in 2014, registered a volume of 10.8 thousand tons. However, in the following two years, there is a significant growth of 108% in 2015 and 86% in 2016, with volumes of 22.4 thousand tons and 41.1 thousand tons, respectively. The record figure reached in 2016, which so far has not been exceeded, was accompanied by an expansion of the harvested areas (2,209 ha), this growth was due to the fact that Peruvian ginger began to be recognized by the international fresh market and the attractive price in 2015. In the following years, there is a drop in these harvested areas: 1 800 ha in 2017 and 852 ha in 2018. This drop in volume it was caused for the 29% drop in purchase prices of ginger in fields, which caused that the farmers opted for a reduction of areas.

In 2020, a total of 1983 ha of harvested areas was counted, which means a produced volume of 36.9 thousand tons. This 97% increase versus the previous year is due to the COVID-19 pandemic, which appeared in the first quarter of 2020, which has favored the increase in the demand for ginger, since it is considered a product that helps to strengthen of the immune system.

In 2021, it is projected to harvest 2,440 ha, which represents a volume of 45.5 thousand tons. This 19% growth in supply is due to the continuous demand of the international market for ginger, which could not be fully supplied the previous season. Likewise, prices similar to that of 2020 are forecast, since demand has also increased compared to the previous year.

Peruvian Ginger in numbers

In 2020, Peru experienced an extraordinary increase in its ginger exports with an average annual growth of 42.8% which allowed it to close this year as the fourth exporter of ginger and the sixth with the highest yield per hectare in the world.

The organic Peruvian “kion” or ginger has an excellent quality and a much more intense flavor than the conventional one, which has allowed it to be promoted as a unique product with enormous potential to conquer new markets. These same characteristics are what have allowed Peruvian organic ginger to displace other competitors in the North American market and become the first supplier in this country.

In Peru, ginger has been cultivated since the 18th century; however, it is a relatively new product for the export basket due to the fact that it has been exported in greater volume since 2014, mainly for the international fresh
and dehydrated market in dust. Of the total produced in 2020, it is calculated that its production is directed to the following markets: 81.8% for the external market as fresh, 7.7% for the external market as dehydrated powder, 8% for the external market such as juices and 2.5% for the local market. 

As can be seen, the volume of juices, pulps and purees is a still small but potential market percentage. In figures in 2020, the exported value of this industry was 4 million USD and the total volume was 1.47 thousand MT. Likewise, the main export markets were: United States with 68% of the total share. The second largest market share is the Netherlands with 25% of the total. Together, both countries have shown a 93% participation in this last crop season.

Selva Industrial

Selva Industrial S.A. It has a processing plant located in Junín-Chanchamayo, very close to the ginger crops, which allows us to be more logistically competitive.

Currently our suppliers are made up of organized producer associations and fresh ginger exporting companies that have their own fields. Each of them has extensive experience in the sowing and harvesting of ginger and all have opted for quality organic agriculture. Likewise, they have been carefully selected by our Fruit Logistics team, reviewing the traceability of their fields and their 100% safety assurance. It is also important to emphasize that, as part of our sustainability program, our suppliers receive continuous training and periodic visits from our agronomists.

Among the range of ginger-based products offered by Selva Industrial S.A. They are: Frozen Refined Juice / Puree and Aseptic Juice / Puree acidified with lemon juice or citric acid. Both products in drums, BiB and plastic pails packaging configurations.

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