Sunday 11 September 2011

Imitation Ginger Ale, Disease-Free Stock, Rural Projects, Online Shop & Long Term View

I found a Canada Dry newspaper advertisement from 1927 which claimed that many imitations were actually made with capsicum. I delved into this a little deeper and found that it was quite common for makers of cheaper ginger ales to use capsicum in place of the more expensive ginger or use it in addition to small quantities of ginger. Usually capsicum was omitted from the list of ingredients on the bottle. Nowadays 'pure' ginger ales dominate the market. I can only assume that ginger ales adulterated with capsicum are no longer made.

Fresh Plaza carried the views of Danny Deen from Denmipex, a major produce importer and exporter from the Netherlands. He said that this season's ginger harvest in China has been good in terms of both quality and quantity. But he also said that prices will be varied because of the uncontrolled nature of Chinese exports. Must be a nightmare for importers!

Islands Business, a news website which covers the Pacific islands, reported on the efforts by Fiji to return its ginger industry to its heyday of the late 1980s and early 1990s before it succumbed to disease. To revive the industry requires disease-free ginger seed. Ginger is currently grown, quite naturally, in areas which receive adequate rainfall. Unfortunately, the problems which affect ginger, root knot nematode and pythium fungal rot, thrive in wet conditions. So the Australian Centre for International Agricultural Research and the Fiji Department of Agriculture have employed two farmers to produce disease-free ginger seed on their farms located in relatively dry areas. It is expected that these irrigation-feed farms will produce 60 tonnes of seed for next year and 300 tonnes for the following year. These seed producing farms will also be used to train new ginger farmers.

The Hindu Business Line carried an article with the intriguing title "How many yuppies does it take to change a village?" It introduced the reader to a State Bank of India sponsored programme for young Indian professionals to leave the comfort of their air-conditioned offices and spend a year working in a small rural community on a project of their own choosing. One of the selected projects involves the development of a value-added chain for ginger in the Wayanad district. The value-added route is becoming an increasingly popular and profitable route to take.

We sampled an absolutely gorgeous ginger chocolate the other day but we will keep its identity secret until we launch our new online shop. We are actually going to start selling products which we have tried and tested and, most importantly, liked. In other words, we will only sell products which we would buy.

Last Monday I visited the Speciality & Fine Food Fair at London Olympia. The organisers described it as the 'quintessential trade event for fine food'. I went there hunting for ginger stock for our new online shop and came away extremely happy. But with so much on display it was difficult not to think of other business ideas. Each time I saw a general deli display I thought "I want to open a deli". Each time I saw a crisp producer I thought "I want to make crisps". But by the time I left the show I was convinced that my original business idea was the best.

I came across what I thought were two conflicting stories last week. First, The Hindu reported that ginger farmers in the state of Kerala, many of them growing ginger for the first time, are living in uncertain times. Current market spot prices have plummeted by as much as 75% compared to the same period last year. The low prices have been attributed to both oversupply and disease. And second, The Financial Express reported that ginger farmers in Kerala and neighbouring Karnataka were reaping the financial rewards of investing in ginger. Even allowing for the occasional blip, over the long term (ten years and more) farmers have done extremely well. So that, I think, is the reason for my initial confusion. It all depends on whether you take a short or long term view of the situation.

The Himalayan carried a similar report about how Nepalese farmers have been attracted to ginger recently. As anything could happen next year, let's hope that these farmers take a long term view.

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