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Entering the European market for dried ginger

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Exporters from new and/or unknown ginger supplying countries should certainly look at the European market, like the Peruvian spices exporters did few years ago. Within 5 years, Peruvian exporters have developed their ginger exports to Europe impressively. They are particularly successful with organic and also fairtrade certified produce because their volumes are good and the promotion is attractive. The quality of the Peruvian export product is very good and apparently more than compensates the high price level.

1. Which requirements should dried ginger comply with to be allowed on the European market?

What are mandatory requirements?

All foods, including dried ginger, sold in the European Union must be safe. This applies to imported products as well. Additives must be approved. Harmful contaminants, such as pesticide residues, and excessive levels of mycotoxins or preservatives are banned. It should also be readily obvious from the labelling whether a food contains allergens.

Official border control for dried ginger imported to the European Union

Official food controls include regular inspections that can be carried out at import or at all further stages of marketing. In case of non-compliance with the European food legislation, individual cases are reported through the Rapid Alert System for Food and Feeds (RASFF), which is freely accessible for the general public.

You should be aware that repeated non-compliance with the European food legislation by a particular country might lead to special import conditions or even suspension of imports from that country. Those stricter conditions include laboratory tests for a certain percentage of shipment from specified countries.

The European Parliament and Council adopted the New Official Controls Regulation, which entered into force in December 2019. New official controls regulation will extend its scope to organic products. Exporters from third countries will use the single standard Common Health Entry Document for the prior notification of exports.

Contaminants control in dried ginger

European Commission Regulation sets maximum levels for certain contaminants in food products. This regulation is frequently updated and apart from the limits set for general foodstuffs, there are a number of specific contaminants limits for specific products including dried ginger. The most common requirements regarding contaminants in dried ginger are related to presence of pesticides residues, mycotoxins, heavy metals, microbiological organisms and food additives. Contaminant levels shall be kept as low as can reasonably be achieved following recommended good working practices.

Mycotoxins

Presence of mycotoxins (aflatoxins and ochratoxin A) was the main reason for banning dried ginger from the European market until 2012. The maximum level of aflatoxin for dried ginger must be maximum 5 μg/kg for aflatoxin B1 and 10 μg/kg for the total aflatoxin content (B1, B2, G1 and G2). For ochratoxin, the maximum level is 15 μg/kg (CELEX 32006R1881).

Pesticides Residues

The European Union has set maximum residue levels (MRLs) for pesticides in and on food products. Products containing more pesticide residues than allowed will be withdrawn from the European market. However, excessive residues of pesticides are not very frequent case in trade with dried ginger. The European Union regularly publishes a list of approved pesticides that are authorised for use in the European Union. This list is frequently updated.

Heavy metals

Specific limits for the presence of heavy metals in herbs and spices are not yet set in the European legislation on contaminants but this may change soon. The European Commission launched a review process for the maximum allowed levels of lead in 2020. New limits for some products may be set in 2021. The proposed limit values for lead are 2 mg/kg for ginger.

Microbiological contaminants

There were four notifications of ginger issues in the RASFF database in the first nine months of 2020. These notifications were related to salmonella, aflatoxins, and polycyclic aromatic hydrocarbons in ground ginger, and lead in fresh ginger. In practice, most microbiological contamination happens with salmonella and aflatoxins.

Steam sterilisation is the best way to combat microbiological contamination. However, this treatment negatively affects the taste of ginger. Therefore, research is being conducted into alternatives to steam sterilisation. Since it is still the cheapest and safest method to combat microbiological contamination, European buyers usually require their suppliers to use steam sterilisation.

Tips:

  • Earn a significant premium by supplying ginger that is sterilised at the source. However, investments in the necessary equipment can be very costly, up to €1 million.
  • Arrange heat treatment by contracting specialised service providers in Europe, such as Fisce.

Food additives

Buyers and European authorities can reject products if they have undeclared, unauthorised or too high levels of extraneous materials. There is specific legislation for additives (like colours, thickeners) and flavourings that list what E-numbers and substances are allowed for use. Additives that are authorised are listed in Annex II to the Food Additives Regulation.

Although you might consider using food additives in the production of dried ginger, keep in mind that European traders and consumers prefer spices that are additive-free.

Tips:

What additional requirements do buyers often have?

Consider complying with the following non-legal requirements to ease market access. European buyers can use these requirements as selection criteria.

  • Food safety certification as a guarantee: Many EU buyers (e.g. traders, food processors, retailers) require the implementation of a (HACCP-based) food safety management system.
  • The most important food safety management systems in Europe are British Retail Consortium (BRC), International Featured Standards (IFS), Food Safety System Certification 22000 (FSSC 22000) and the Safe Quality Food programme (SQF). Always verify your buyer’s preference for a specific food safety management system, as some may prefer one system to the other. For example, retailers in the United Kingdom have developed BRC. For that reason, BRC is more commonly demanded in the United Kingdom than in other countries. If you want to target the United Kingdom, BRC may be more important;
  • Corporate Social Responsibility (CSR): companies have different requirements for CSR, such as signing their code of conduct or following common standards or reporting methodologies including the Supplier Ethical Data Exchange (SEDEX), Ethical Trading Initiative (ETI), the Business Social Compliance Initiative code of conduct (BSCI) or BCorp.

Quality requirements

Product quality is a key issue for buyers in Europe. You need to comply with the Quality Minima Document published by the European Spice Association (ESA). This document is leading for the national spice associations affiliated with the ESA and for most key buyers in Europe.

The Quality Minima Document specifies the chemical and physical parameters dried that ginger needs to comply with when sold in Europe before crushing and grinding (after drying):

  • ash: maximum 8%
  • acid insoluble ash: maximum 2%
  • moisture: maximum 12%
  • volatile oil: minimum 1.5 ml/100 gr
  • SO2: maximum 150 ppm

The ESA has not developed cleanliness specifications. As a result, European buyers often use the specifications for cleanliness stated by the American Spice Trade Association (ASTA).

Tips:

  • Check the main page of ISO’s Technical Committee #34/SC 7 from time to time. This committee develops standards for spices, culinary herbs and condiments, and the page offers an overview of which standards the committee is working on. Also the finished standards can be found there.
  • Check ESA’s Quality Minima Document (in English and Spanish) for more information on the chemical and physical parameters that your unprocessed ginger needs to comply with when it is sold in Europe.
  • In addition to the quality requirements mentioned here, please refer to our study about buyer requirements for spices and herbs for a general overview of buyer requirements in Europe.

Labelling requirements

Correct labelling is important for European buyers. To this end, pay extra attention to labelling your product.

For bulk ginger, you have to include the following information:

  • name of the product
  • details of the manufacturer (name and address)
  • batch number
  • date of manufacture
  • product grade
  • producing country
  • harvest date (month-year)
  • net weight.

Other information that exporting and importing countries may require include the bar, producer and/or packager code, as well as any extra information that can be used in order to trace the product back to its origin.

Packaging requirements

For shipping, bulk dried whole ginger roots should be packaged in PP or PE woven bags (36 kg to 65 kg) with good respiration or ventilation. The most applied packaging sizes depend on customer demands, and on what is common in the supplying country. For example, in Nigeria ginger is typically packed in 50 kg bags.

Ginger processed in the form of slices or powder is packaged in multi-wall laminated bags of different weights ranging from 1 to 25 kg. Common weight classes are 12.5 kg and 25 kg.

Tips:

  • Ask your buyer for their specific packaging requirements.
  • Store packaged ginger in a dry, cool place to prevent quality deterioration. If you offer organic certified ginger, physically separate it from ginger that is not certified.
  • See the website of Practical Actions to learn more on improving pre-harvest handling and processing for ginger.

What are the requirements for niche markets?

Organic ginger

If you want to sell ginger as organic in Europe, they must be grown using organic production methods that meet the European legislation. Growing and processing facilities must be audited by an accredited certifier.  Only after certification you may put the European Union’s organic logo on your products. as well as the logo of the standard holder, for example, Soil Association in the United Kingdom or Naturland in Germany.

Note that importing organic products to Europe is only possible with an electronic certificate of inspection (e‑COI). Each batch of organic products imported into the EU has to be accompanied by an electronic certificate of inspection as defined in Annex V of Regulation defining imports of organic products from third countries. This electronic certificate of inspection has to be generated via Trade Control and Expert System (TRACES).

Sustainability certification

Two most commonly used sustainability certification schemes are Fair Trade and Rainforest Alliance. Fair Trade international has developed a specific standard for herbs, herbal teas and spices for small-scale producer organisations. According to this standard, a premium price of 15% over and above the negotiated price between producer and seller must be established.

In order to improve sustainable production and sourcing of spices, a group of mainly European companies and organizations formed the Sustainable Spice Initiative in 2010. The major objective of this initiative is to strive for fully sustainable spice production and trade in the sector.

Tips: 

2. Through what channels can you get dried ginger on the European market?

Of course, dried ginger is used at home as a spice in Asian-style food dishes, and to a lesser extent also to spice self-baked cookies etc. In addition, ginger pieces are used to make tea or extracts for cold treatments. Consumer use at home of ground ginger or ginger pieces accounts for between 10% and 25% of the total market.

However, the main market segment of ginger is the food processing industry with 75‑90% of the market. The leading segment is bakery products (such as gingerbread and cookies and other sweet pastry products), but also Asian food products, soups and sauces, and various drinks or infusions (e.g. ginger ale, ginger beer, tea).

How is the end market segmented?

The largest user of dried ginger in Europe is the food processing industry, followed by retail, foodservice and food ingredients (additive segments).

Figure 1: End market segments for ginger in Europe

End market segments for ginger in Europe

Food and drinks

The food and drinks processing industry is roughly estimated to use 75% to 90% of all dried ginger on the European market. The largest users within this segment include spice mixture producers, convenience food and snacks, culinary, bakery products, the sauces, seasonings and soups industry, the drinks and beverages industry, and the confectionary and chocolate industry.

Spice mixture producers are companies specialised in production of spices and seasonings for different applications. Those companies are constantly investing in research to develop custom formulations for food processing companies and help launching new attractive tastes. They produce either dried or liquid spice ingredients. Some examples of such companies in Europe are AVO (German producer with also a factory in Poland and in France), Meat Cracks, Kerry Ingredients, Frutarom (part of IFF), Farevelli Group, Food Ingredients Group, Kalsec, EHL Ingredients or Ion Mos.

The meat industry is an important user of dried ginger but very often not supplied directly but through spice and food ingredient companies. However, larger groups of companies may import dried ginger directly. Example of such a group includes OSI Food Solutions.

The European sauces, seasonings and soups industry is also an important user of dried ginger. However, this market is dominated by international brands such as Kraft Heinz, McCormick, and Maggi (Nestle).

Retail segment

The retail and food-service segments for spices and herbs are dominated by European (often national) spice brands/companies, such as Fuchs in Germany, Verstegen and Euroma in the Netherlands, Santa Maria (Scandinavian countries) and multinational brands such as McCormick, Kraft Heinz, etc. For example, the Dutch spice specialist Silvo is part of McCormick since 2004. Also, some strong brands are developing in South East Europe, such as Prymat Group. These spice companies import spices directly from all over the world and have in-house processing and R&D facilities.

Private label (supermarket) brands are important as well. European spice packers and blenders conduct production for all these brands. Since supermarkets often require large quantities and have very specific requirements regarding packaging, it is very difficult to supply them directly from outside Europe. Products already packed in origin countries are mainly found in European ethnic supermarkets, open-air markets, and webshops.

The retail sector can also be segmented into supermarkets, independent grocers and specialty shops. Most retailers sell individually packed spices or herbs and also a range of specific mixtures. Overall, tailored spice and herb mixtures are becoming more popular in the retail segment, partly due to the increasing interest in ethnic food but also due to the growing demand for convenience.

Leading supermarket chains in Europe include Tesco, Carrefour, Lidl, Metro, Aldi, Delhaize, Rewe, Edeka, Auchan and Albert Heijn.

Foodservice segment

The foodservice channel (hotels, restaurants and catering) is usually supplied by specialised importers or wholesalers. These companies are sometimes the same as the brands that supply the retail segment. The foodservice segment often requires larger packaging sizes of dried ginger, e.g. cans from 300 to 500 grams or sacks of a few kg.

World cuisines, healthy food and food enjoyment are the major driving forces in the foodservice channel in Europe. The fastest-growing business types are likely to be new (healthier) fast food, street food, pop up restaurants, international cuisines and sandwich bars.

Through what channels does the ginger reach the consumer?

Specialised spice importers represent the most important channel for dried ginger in Europe by a long way. However, sometimes, dried ginger can be placed on the market through an agent or directly supplied to food processors or food service companies. Some wholesalers also have packing facilities and usually supply private label spices and herbs.

Importers and wholesalers can be general spice importers or further specialising in specific roles. Some now exclusively deal with ingredients aimed at the food-processing industry while others pack spices and spice mixes for retail chains. Some importers also deal with a broader range of products apart from spices, such as beans, seeds, dried fruits and nuts, tea, or fine foods / delicatessen.

An important trend is the growing pressure that retailers put on their suppliers (importer and food manufacturers). The higher requirements from the retail industry determine the supply chain dynamics from the top down the chain. Pressure is translated into lower prices but also added value aspects such as “sustainable,” “transparent”, “natural,” “organic”, or “fair trade” products. To achieve this, many importers develop their own codes of conducts and build long-lasting relationships with preferred developing country suppliers.

Examples of bulk importers of dried ginger in Europe include Albarracin (Spain), Nedspice (the Netherlands), European Spice Services (the Netherlands), Husarich (Germany) or Saran Enterprises (Poland).

Examples of specialised importers that are using dried ginger in different spice mixtures include Culinar (Sweden), Epos (the Netherlands; the only producer in Europe with a range of allergen-free blends), and Colin Ingredients (France).  

Examples of spice importers that are supplying several segments include Isfi Spices (Belgium) and Verstegen (Netherlands).

Figure 2: Trade channels for dried ginger in Europe

Trade channels for dried ginger in Europe

Agent/broker

Brokers and agents are intermediaries who bring buyers and sellers together. They charge a commission for their services. European buyers can be trading companies, but they are mostly processors. Agents and brokers are interesting when you have a specialised product (such as high quality or sustainably certified) for which buyers are harder to find. The role of the agent is slowly diminishing due to the increased transparency demanded by the market.

Tips: 

  • Download the members list (PDF file) of the European Spice Association (ESA). The first pages list the several national spices associations that are member of the ESA. From page 2 on there is a long list of so-called “full member companies”. Many of these companies are dedicated spices and herbs traders and packers. In the document these companies are grouped per European country.
  • Search the list of exhibitors of the specialised trade fair Fi Europe. This fair is the leading event in Europe where all ingredients companies in Europe gather. It takes place every year. In the even years the FI is in Germany, in the uneven years in France.

What is the most interesting channel for you?

Specialised importers seem to be the best contact for placing dried ginger on the European market. This is specifically relevant for new suppliers as supplying the retail segment directly is very demanding and requires a lot of quality and logistical investments.

However, for the well-equipped and price competitive producers, packing for private labels can be an option. Until now, importers often do private label packing for European supermarkets. As the cost of the workforce in Europe is increasing, importers of dried ginger sometimes search for opportunities to pack in supplying countries if they can assure full traceability and quality control.

As an exporter, you can use several channels to bring your spices or herbs on the European market. However, you should realise that if you are unable to supply at least one container within your buyer’s (short) time frame, it is unlikely that you will successfully manage to supply to the European market. If you are unable to do so, you can work together with other suppliers interested in supplying to the European market.

Tips: 

  • See our Tips for finding buyers on the European market for spices and herbs.
  • Benefit from the experience and knowledge of specialised European importers and agents instead of approaching manufacturers directly.
  • To help you enter the market, consider working with an agent or representative with a good reputation. You can look for commercial agents on the website of Internationally United Commercial Agents and Brokers (IUCAB), which lists all their national member organisation. You can use the services of these organisations to find an agent or representative in a specific country.
  • Visit or participate in trade fairs to test whether the market is open to your product, to obtain market information and to find potential buyers. The most relevant trade fairs in Europe are ANUGA, SIAL SANAHealth Ingredients EuropeBiofach (for organic) and Vitafoods.

3. What competition do you face on the European dried ginger market?

Your main competitors are other suppliers from developing countries. Altogether, suppliers from developing countries exported 132 thousand tonnes of dried ginger to Europe, at a value of €182 million. More than 90% of it was whole ginger, of which (as mentioned before) a considerable part is fresh ginger. Figure 5 provides more details. Note that the export volumes from several countries show significant fluctuations year to year, mostly because of fluctuating harvest volumes.

China

China is Europe’s main supplier of ginger and the most important competitor. The country accounted for more than 70% of all supplies from developing countries to Europe in 2019. At least 50% of Chinese ginger exports is fresh produce and more than 90% of Chinese fresh and dried ginger is exported in uncrushed, unground form; only less than 10% is crushed or ground product.

The production of ginger in China is mainly mechanised. Most of the Chinese ginger, both fresh and dried, comes from the Shandong province, the leading ginger producing province in China, but ginger is also produced in several other provinces. While China is the world’s largest exporter of ginger, it is also the largest market for ginger, as ginger is an important ingredient in the Chinese kitchen.

Brazil

Brazil is the second-largest ginger supplier to Europe, with a 10% share of European imports coming from developing countries. All of Brazil’s exports are fresh produce of high quality, also because a large share of Brazilian ginger is exported by plane. Until 2017, most of the Brazilian ginger was conventional, but since 2019 part of the exports is now certified organic.

Peru

Peru is the third-largest ginger supplier to Europe, with a 7.8% share of European imports coming from developing countries. For several fresh produce importers, Peru is their preferred supplier, as the quality is considered premium compared to fresh ginger from China. Peru’s ginger exports to Europe and its market share have increased significantly in the 2014–2018 period, but they remain still relatively small compared to China. The year 2019 showed a small decline in Peruvian ginger exports to Europe, but was also marked by very strong growth of Brazilian ginger exports to Europe, resulting in a declining Peruvian market share. A small share (smaller than 30%) of Peruvian exports to Europe are dried product of high quality, not crushed nor ground product, and a lot is organically certified.

Peruvian ginger production grew slowly but gradually until 2015, when exports totalled 11 thousand tonnes in volume. Production and exports really took off in 2016–2018, reaching export volumes of 15–26 thousand tonnes. The lion’s share of production is exported, with top destinations being the US and the Netherlands. The export volume to the Netherlands was 7,500 thousand tonnes in 2019, while other European countries received 1,500 tonnes (Spain), 800 tonnes (Germany), and 300 tonnes (Italy).

Peru’s national export promotion organisation, PromPeru, strongly promotes and supports exports. PromPeru created and promotes the national brand Superfood from Peru — ginger being one of them — in all leading international trade fairs. Peruvian exports of ginger are expected to continue to grow in the next years.

Nigeria

Nigeria is the fourth-largest ginger supplier to Europe, with a 4.4% share of European imports coming from developing countries. All Nigerian exports consist of dried ginger that is neither crushed nor ground. The Nigerian season for ginger runs from May to October, and the supply season runs a little longer, totalling nine months. Production takes place in the northern part of Nigeria, predominantly in Kano and Kaduna States.

The Nigerian Export Promotion Council is responsible for Nigeria’s export promotion, which is important, also because Nigeria identified ginger as one of its focus products for export diversification, shifting away from oil.

Thailand

Thailand is the fifth-largest ginger supplier to Europe, with a 1.4% share of European imports coming from developing countries. Thailand predominantly exports fresh and certified organic ginger. From August to December, Thai organic ginger is more or less the only available organic ginger on the market, with Peru dominating the organic ginger market in Europe during the rest of the year.

India

India is Europe’s main supplier of Curcuma longa (from which turmeric is made) by far, but for ginger this is different. Although India is one of the largest producers of ginger in the world, the country only exports dried ground ginger to Europe. Exports of Indian crushed ginger have shown a relatively stable pattern during the 2014–2018 period with 1.4 to 1.5 thousand tonnes of exports to Europe per year, but grew to 1.7 thousand tonnes in 2019. Virtually all ginger from India consists of conventional products.

Which companies are you competing with?

Companies from China

The production of ginger in China is mainly mechanised. Examples of companies from China that are reflecting China’s position as leading supplier of relatively cheap ginger at large volumes, are the following:

  • Shandong Anqiu Baisheng Food Co. This company exports to mainly European countries such as the Netherlands and Spain. Their products and production comply with GAP, GRASP, BRC and SMETA, plus organic certification.
  • Anqiu Luxing Food Co. This company’s export portfolio is more diversified in terms of geography. They export to Europe, America, and the Middle East.
  • Qingdao Serve Nature Future. This company (also) mostly exports to Europe.

Most of the Chinese companies sell both fresh and dried ginger that comes from the #1 ginger production province Shandong (note that ginger is produced in several other provinces too).

Other small suppliers, such as Peru, conduct their production manually. As a result, China is able to produce and export large volumes of ginger compared to the other suppliers from developing countries. This fact makes it difficult to compete with China if you are a smaller supplier. If you want to compete with China, you should be able to:

  • Deliver stable supplies of ginger, both in quantity and in quality;
  • Comply with delivery times;
  • Comply with food safety requirements.

You can also explore opportunities on niche markets such as organic and Fairtrade, or for specific applications such as beverages, which have specific requirements.

If you want to sell your ground ginger to Europe, you are competing directly with European processors. Your buyers could ask you to provide the same service as the European processors. You will have to make sure that you comply with their requirements such as short supply times and steam sterilisation.

Tips:

  • Check the harvesting calendars at the website of Nedspice to understand the different harvesting periods in large producing countries. This information is important to know, as harvesting periods in different ginger producing countries vary considerably, which has a major impact on your competitive position throughout the year.
  • Stay up to date on worldwide harvests and stock levels. Look for crop reports, which are often shared by industry players during specific spice events. Nedspice  also publishes up-to-date information on national and international prices for ginger.
  • Explore opportunities to cooperate with European processors, especially large ones that have the size and resources to invest. You can find European processors in the member lists of the national spice association in Europe. See the member section of the European Spice Association (ESA) for an overview of associations.
  • Check the Food and Agriculture Organization of the United Nations (FAOSTAT) website for ginger production data.

Companies from Peru

Peruvian exporters of ginger mostly export a range of agricultural products. In the first place, often they export both ginger and curcuma, the two leading spices produced in Peru. Other products that might be part of the range are cacao, dried berries, etc. Some examples of such Peruvian exporters are Agro-Expo-Llacta SAC, SupraCorp SAC, and Fito Export.  

Companies from Nigeria

Exporters from Nigeria typically export the whole range of Nigerian agricultural outputs. Examples are Enkay Indo Nigerian Industries, and Tinker and Bell.

Companies from India

Companies from India will be your main competitors when you would like to export ground ginger. Indian exporters can offer products at a low price, but at the same time, there are concerns among buyers regarding quality and quality consistency, including adulteration.

There are many companies in India that export spices. Ginger is among the top-three spices produced in India, so virtually all Indian spice exporters can export ginger, although it is not their most important export product. For example, curcuma is a more important export product for them. Most Indian exporters are small or medium-sized local companies, such as DeepKamalExports and Herbcyte. Competition among the many companies is considerable, which gives buyers a clear advantage when it comes to price negotiation.

What are substitute products for dried ginger?

Ginger has a typical flavour and taste; therefore, real substitution is not possible. The only substitution that one can think of is the use of fresh ginger instead dried ginger. Fresh ginger is used for cooking, at home or in restaurants, and also in food and beverage manufacturing.

4. What are the prices for dried ginger?

Ginger is an annual crop. Its prices fluctuate from harvesting season to harvesting season. The price of dried ginger also depends on the price of fresh ginger. Also, there are different prices for the different product varieties and origins.

For example, in July 2019, the price for dried Indian ginger whole was about USD 4,000 per tonne, while Chinese ginger sliced was about USD 3,000 per tonne and Nigerian ginger split was sold at about USD 2,000 per tonne FOB (Free on Board). Another (Nigerian) source mentions that average prices for exported dried ginger from Nigeria are between USD 2,250 and 2,600 per metric ton in July 2019.

Overall, prices in the summer of 2020 were higher than in the previous year. For example, Chinese sliced ginger reported US$4,450 per tonne FOB and in Nigeria US$2,900 per tonne. In Nigeria, exporters are reluctant to offer any forward contracts because of uncertain shipment schedules.

Global market prices for ginger are strongly influenced by China, the largest producer of both fresh and dried ginger. While Chinese ginger is on average the cheapest ginger available on the global market, traders often prefer ginger from more expensive and higher quality suppliers, for example, from Peru and Brazil. They also buy from these countries because of quality differentiation and risk mitigation.

The price of ginger that consumers buy in the supermarket consists of:

  • Raw materials: 5-15%.
  • Processing: 5-15%
  • Transport costs: 2-5%
  • Import and processing in Europe: 15-30%
  • Retail margin: 30-60%

Here are a few examples of dried ginger available on select European markets:

The margins that you can receive as an exporter may differ. These margins are influenced by various factors such as:

  • Country of origin;
  • Current and expected future harvest situation;
  • Quality of the raw material;
  • Level of processing;
  • Level of demand;
  • Trends in prices.

Margins and profits can be higher for you as an exporter if you are able to add value locally. For example, by further processing or certification, you can create a competitive edge and benefit more.

Tips:

  • See the websites of Spices Board IndiaNedspice and ITC Trade Map for up to date information on national and international prices for ginger.
  • Establish long-lasting relationships with your buyers. Buyers are willing to pay higher prices to suppliers that are able to help secure supply and comply with delivery times as well as food safety requirements. They will also be more willing to invest in your partnership.

This study has been carried out on behalf of CBI by Autentika Global.

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