China: Lower garlic acreage and growing ginger prices

As reported by the company Land Produce, the low purchasing prices of garlic in China last year have resulted in a decrease in the country’s acreage, especially in Pizhou, Jinxiang and other traditional garlic producing area. According to incomplete statistics, the garlic planting areas have been reduced by about 5-10% this year compared with last season.

The yield has also been reduced by about 10-15% this campaign, and up to the end of May 2015, about 0.3-0.4 million tonnes of 2014’s garlic stock remains (about 6-8% of 2014’s total harvest). Overall, garlic supply in China is expected to be 10% lower than last year, although quality is expected to be good and to meet all customer requirements.

While prices are currently significantly higher than before the Chinese New Year, Land Produce sales representative Catherine Shao predicts that “They should drop again after the Lantern Festival,” and in the market analysis issued by the firm, Land Produce expects “Garlic prices to stay low, with growers and traders facing a long-running struggle. Prices, however, will be higher again in July because of higher demand. Customers are thus advised to place their order early.”

In terms of marketing, Land Produce exports its garlic to many destinations worldwide, including Brazil, the Middle East and Europe, each with their own requirements. Catherine explains that “Brazil, for example, prefers purple garlic, while Europe is a better market for white garlic. In the Middle East, business is currently falling as a result of conflicts with the payments.”

GINGER

As for the ginger market, according to Ms Kathy Ma, of Jining Sanlong Fruit & Vegetables Co. Ltd, it is currently marked by stability after the traditional Chinese New Year’s Holiday. “But since soon the planting will start for the new season, prices are slightly increasing, because growers from North Eastern areas are starting to buy more ginger seeds.”

She assures that “Both the domestic and international markets are stable or registering slight growth, although the EU countries, which are the company’s main clients, are importing slightly smaller volumes.” In total, Jining Sanlong reports to be exporting a total of between 40 and 80 tonnes of ginger per week, which is 2 to 4 containers.

For more information:

Catherine - Sales Dept
Jining Land Produce co.,ltd.
tel:+86 15589756260
MSN:shaohuiqiong@hotmail.com
email:catherine@chinagarlic.com
URL:http://www.chinagarlic.com

Kathy Ma
Jining Sanlong Fruit & Vegetables Co.,Ltd
Tel: 86-537-5151322 Fax: 86-537-5120333
Website: www.sanlong.cn SKYPE: xiaoqixiaoma
E-mail: madongli@sanlong.cn

Author: Yzza Ibrahim / Juan Zea Estellés