Local manufacturers who prefer imported ginger to use as an additive in products might benefit from current conditions in the market which see prices stabilising due to higher levels of production.

Production tracker freshplaza.com reported in the first week of October that there is more ginger available this year due to diminished demand from Eastern Europe. It was noted that while sale prices compared to last year are higher and freight is also 35 per cent higher, because of contracting demand in Europe, prices were stabilising.

The source said that supplies of both conventional and organic ginger have been up 30 per cent year-to-date in 2022 due to the Eastern European problems. Global shipments to those countries fallen leading to increasing the supply to the US and other countries it was noted.

Regionally, supplies are available yearly in June to December from Brazil followed by Honduras starting in December and Mexico starting in March. Organic ginger comes from Peru throughout the year. Suppliers also include China and Costa Rica.

Manufacturing demand

Previously, Jamaican manufacturer John Mahfood indicated that his company Jamaican Teas imports about 1.5 million kilogrammes of green ginger annually, but in the form of dry and ground ginger. The spice is sourced primarily from Nigeria and China.

He said in August 2021, “Currently we pay about US$3.60 landed per pound for the dried and ground product which is imported. This is the equivalent of paying US$0.30 per pound for the green product ($45.00 per pound). [ In reality] Jamaican Teas currently pays $120.00 per pound for the green product locally “when we can get it. This price is way too high and it would make us uncompetitive.”

Jamaican ginger, it is noted by the Agro-Invest Corporation Limited, is positioned in niche markets, and is estimated to have global demand of about 21,000 tonnes of fresh or 4,200 tonnes of dried ginger, which is less than four per cent of global trade.

Although grown primarily for export, local ginger also has clients in the manufacturing sector.

Salada, in the last year, purchased approximately 150,000 pounds of Jamaican ginger root its CEO said last year.

Agro-Invest Corporation Limited, in online data, indicates that the projected marketable yield for a 0.4 hectare ginger farm is 6,075 kg. The cost of production amounts to $101 per kg of ginger. The farm-gate price for ginger stands at $435.29 (MICAF 2018).

On October 10, 2022, Agro-Invest said that while it had no price updates, for first quarter 2022- January- March all island production was 563.5 tonnes representing a 36 per cent increase over the previous 2021 period where 414.4 tonnes was produced.

For the second quarter 2022 April-June all island production was 270.2 tonnes representing a 27 per cent increase over the similar period where 212.18 tonnes was produced.

Fresh Plaza reported that consumption globally, “should remain strong compared to previous years. However, it was noted “logistics continue to be a challenge when moving ginger with delays on both the vessels as well as the port discharges.”