Nigeria’s ginger underexploited as exports generate N10bn from $3bn global market

By Onome Amuge.

Nigeria recently recorded an increase in revenue from ginger export, with the crop’s export value rising by 17 per cent to N10 billion in the second quarter of 2023, its highest in six years. The development, according to the National Bureau of Statistics (NBS), is a significant improvement in Nigeria’s ginger export value, given that current export earning stands over  50 per cent above the N4.6 billion recorded in the corresponding period of 2022.

Ginger is one of Nigeria’s  major export commodities with a high potential to generate significant revenue to the economy. Market players who attested to the distinctive quality of the country’s ginger, noted that Nigeria ginger is being requested for by the Arabs, Asians and all over the world, who have testified that Nigeria has the best and spiciest ginger in the world.

The International Market Analysis Research and Consulting Group (IMARC Group), in its latest market report on the commodity, noted that the global ginger market size reached $2.9 billion in 2022. Looking forward, IMARC Group expects the market to reach $ 4.7 Billion by 2028, exhibiting a growth rate (CAGR) of 7.94 per cent during 2023-2028.

An overview of the top exporting countries of whole ginger in 2022 by Tridge, the world’s leading data and media company in agri-foods, showed that China emerged the top exporter globally with a 57.20 share in export value, followed by Netherlands,India,Brazil at 17.62 per cent,9.25 per cent and 5.99 per cent share in export, respectively.

Meanwhile, Nigeria wasn’t included in the list of top ten exporting countries which included Germany,Spain,United States, Myanmar,Fiji and Italy, an indication that the  the largest producer of ginger in Africa, and the second largest in the world after India,is yet to get a substantial chunk of the $3 billion global ginger market.

Nigeria’s position,experts argue, is an indication that the country’s export potential is under-explored, considering that in the year under review,countries with lesser production capacity such as China and Netherlands dominated the export market with a combined 74 per cent of global export market share.

Gagarin Madaki, president of the National Ginger Association of Nigeria (NGAN), observed that Nigerian  ginger is sold per bag rather than per kilogramme, leading to a constraint in income for producers and marketers.

“The farmer is cheated; the buyer is cheated. The sharp practice has to stop,” he said.

The NGAN president emphasised the need to adopt a new strategy to ensure Nigeria’s comparative advantage in ginger production receives a boost by way of producing and exporting quality produce, leveraging on the international best practices.

In addition, he pointed out the issues of poor post-harvesting handling, use of inorganic chemicals, among others as limiting the revenue generating potential of ginger in the international market, adding that it was also imperative to improve farmers’ productivity.

According to Madaki, ginger is the fourth largest priced commodity in Nigeria which makes it a good foreign exchange earner.

Highlighting some of the benefits of the commodity, Madaki noted that aside from the economic impact of ginger and relevance in the brewery and food industry, it is also of huge benefit in the health industry as it is used to help fight infections, lower blood sugar and reduce heart attack risks.

“It is used in the manufacturing of pharmaceutical drugs and during COVID-19, ginger value skyrocketed by about 500 percent because people know the impact it has on cold, cough and all that,” he said.

The president, therefore, encouraged farmers to produce based on international best practices for improved benefits.

Kelvin Emmanuel, Kelvin Emmanuel, co-founder and CEO at Dairy Hills, observed that

Nigeria’s ginger is being exported at a giveaway as Europeans buy ginger from

Nigeria at $2,000 per tonne and gets 35 times the value processing it into ginger oil.used as flavouring

agents for beverages, confectionery and perfumes.

According to Emmanuel ,Nigeria exported 523,000 metric tonnes of ginger worth $12 million

in 2021 , which represents only 14 per cent of the global supply for ginger for a country

recognised as the second largest producer of the commodity globally.

The global market analyst  believes Nigeria could earn more if its export volume is converted into

ginger oil through steam distillation.

Ado  Saleh, chairman,  National Ginger Association of Nigeria, Jigawa State chapter, noted that though Nigeria is one of the largest producers of ginger in the world, many farmers lack the financial resources, facilities and knowledge base to operate beyond local production standards.

Saleh also pointed out that the lack of processing facilities has hindered quality production as most of the ginger produced in the country are exported in their raw forms,which at times do not meet international standards.

He enjoined farmers,individuals and organisations in the ginger value chain to intensify  efforts to increase production and export of the agro-commodity which in turn, would bolster financial freedom for the individual farmers and market participants, and elevate the country’s  foreign exchange revenue.

In a chat with Business A.M, Adua Sunom, a ginger producer from Kachia Local Government, Kaduna State, explained that a large number of ginger farmers are smallholders who still rely on traditional methods of cultivation, rather than modernised farming. Sunom added that the farmers and marketers  also lack business skills and knowledge that are attuned to the export market.

According to Sunom, these farmers are only familiar with the local markets where the demand for ginger is relatively small in comparison to global demand.

“Ginger production in the country is laborious as most operations  including planting, mulching, fertilising, weed control, harvesting, and processing, are done manually rather than with mechanised equipment.  Also, most of the farmers  do not know the actual value of the commodity in the global market and are often exploited by middlemen who serve as a link between the farmers and the market,” he said. He added that the inadequate recognition and exploitation of ginger potentials by producers and marketers alike pose serious setbacks to dominance in the global market.

Sunom  called on the government to provide an enabling environment for farmers to attract investments. He also urged financial institutions to support intensified production and marketing by creating investment platforms and funding opportunities for producers and marketers.

He also emphasised that more attention should be given to ginger processing and value addition, noting that it plays a key role in the value chain as it ensures that the country’s ginger meets international quality standards for foreign consumers.

Kenneth Obiajulu, chief executive officer of AgroCorp International Development Limited, called for more investment in the Nigerian ginger production value chain, noting that it was time to make Nigeria earn her place in the global export market of ginger.

“When thinking of ginger, many people automatically think of India and China, the two powerhouses of ginger production and consumption globally, but what many do not know is that the second-largest producer of ginger is located right in the heart of Africa,” he said.

Obiajulu called for strict adherence to international best practices in the production, processing, and packaging of the commodity in order to gain international relevance.

The agripreneur noted that Nigeria is a country with year-round ginger production which can  offer a constant supply to meet both local and international demand.

He also stressed that ginger could either be sold in the local and international market as wet ginger or dry split ginger, adding that dry split ginger is of high demand in the export trade.

Globally, ginger is recognised to be one of the healthiest perennial herbs and has been verified by medical practitioners to possess  anti-inflammatory properties that aid in alleviating pain and swelling associated with osteoarthritis. It is also used as a digestive aid for diarrhoea, nausea, vomiting, and stomach upset occurring from motion sickness, pregnancy,cancer chemotherapy, among other medicinal uses.

Moreso, ginger is utilised as a key condiment or flavouring agent in salad dressings, tomato ketchup,sauces, pickles, curry dishes, snacks and other local as well as international delicacies.

The acceptance of ginger in the pharmaceutical industry has further strengthened  the ginger market, making it one of the most exported and imported spices globally, with Europe serving as the highest ginger importer market. Its application is further expanding in the cosmetics and personal care industries for manufacturing essential oils and soap.