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.