News From The Ginger People®

Owners Abbie and Bruce Leeson inspect 2011 ginger harvest on a partnering organic farm in China.

If you have any questions or for more information please contact us at 800/551-5284 ext. 203 or email kblandin@gingerpeople.com.

The Effects of Currency on Ginger Costs

One of the key reasons for the increased cost of ginger in the past 6 months has been caused by the depreciation of the $US. The depreciating $US has resulted in price increases for products imported in $US to cover the currency loss while products purchased in other currencies have increased with the depreciation in the $US.

Premium Australian ginger products have been subject to largest increases due to the appreciating $A. On September 1, 2010, the Australian Dollar was worth $US0.88975. By mid-December, the $US has depreciated to almost parity with $US0.99739 needed to buy $A1.00. The trend has continued unabated. On April 5, 2011, $US1.03328 was needed to purchase $A1.00. Since September 1, 2010, the $US has depreciated by 16.13%.

Possible strategies for handling the depreciating $US are to contract for a longer period to guarantee pricing or to buy earlier than in the past.

Ginger Supply

Early harvest of baby ginger in Australia, typically used for candied ginger. Photo credit: Abbie Leeson, The Ginger People Vice President

The past year has seen significant changes in the world’s ginger supply. Following many years of balanced supply and demand with steady prices, a shortage in China has been the catalyst for increased prices for all ginger products. In addition, floods and disease in Australia has seriously affected supply from this region. The Hawaiian crop has been in steady decline for a number of years due to a reduction in plantings.

The outlook for 2011 has steadied with fresh ginger contracts being available for the next 6 months at current prices. However current prices are over 30% higher than for the early part of 2010. Dried ginger products have been the most affected with prices doubling in the past 12 months.