“The garlic is smaller in size because of cold Spring weather. The biggest category, 45% of the total new crop, has a calibre of 45 mm. 5% of the new crop has a calibre of 60 mm or larger, 25% of 55 mm and the remaining 25% is 45 mm or smaller. In some areas the garlic has been relatively easy to pull out of the ground because the root has not developed strongly. Total garlic output has been reduced by 15% because of the bad weather. Laiwu is one of the areas that has been hit the most, with a loss of 30% to 40% of the new crop. On the other hand, garlic production in Jinxiang and Henan has gone up. These areas have also been hit by the weather, the impact, however, has been offset by an increase in total production. Garlic from the Pizhou area is the largest in calibre this season."
“All the garlic has been placed outside to dry. Some farmers are staying outside with their crop day and night because of its high price. Independent storage companies are also collecting the new garlic to dry on high shelves. A number of speculators have bought big amounts of garlic. To them, quality is less important, the main focus is quantity. By blocking part of the supply they hope to artificially keep prices elevated. There are estimates that four to five owners hold around 200,000 ton of old garlic in stock.”
Start of export season
“Garlic price has been high for a couple of months already. Countries that, because of high prices, ordered less during the months of March and April, are facing a lack in supply and are eager to increase import. The first garlic has been loaded and shipped to Brazil. This garlic has been 80% dried. Prices hover around 2,000 USD per ton, FOB Qingdao, for white regular garlic with a calibre of 50 mm. Export to Europe will start by the middle of June, when the garlic has entirely been dried. The temperature has been a stable 30 degrees these last days, which is perfect weather for the garlic to dry. We expect to start export to Europe around the middle of June. It will then arrive on the market around week 29 or 30. Competition from Spanish garlic might be considerable this year. Spanish garlic will come on the market by the end of this week. Transport time is much less, its size is good and these growers need no license to supply the European market.
For more information:
Abram Kong
Jining Arrow International Trade
T: +86-537-2980830
M: +86-13655475808
E: abramkong@arrowinternational.cn
Skype: abramkong
