Kidonn Wong
Selecting and packing the new garlic crop
“We grow our ginger and welsh onion near the city of Weifang in Shandong province. Garlic we source from Jingxiang, the so called ‘garlic capital’ of China. In total, Jingxiang accounts for 400,000 hectares of garlic plantations. Jingxiang is located about 200 km from Weifang. All our produce is exported through the port of Qingdao, which is one of the largest international ports in the North of China. We export around 100 containers of garlic each season. Our largest export product is fresh ginger, of which we export up to 200 containers per year.”
To the left, Regular White garlic, to the right, Pure White Garlic
“The harvest has come to and end and the garlic is now stored in cold storage. Domestic garlic prices hover around 10 to 12 Yuan (€ 1.20) per kilogram, which is high compared to last season’s prices. We run an export business and we supply domestic supermarkets. Due to the garlic prices over summer, our total exports dropped by almost 50%. In my opinion, the Chinese market is outperforming the export market.”
Rising labour costs and competition
“At the moment, there are little developments. Most are waiting for the market to turn around. All garlic has been harvested, and the new crop will be planted after October. In Shandong, there are a number of agricultural development ongoing, supported by the Chinese national and local governments. Plans have been implemented that make is easier for farmers to take out loans from banks. This should facilitate further investments in seeds, pesticides, sheets, watering and fertilizers. In addition, the governments is improving rural infrastructure, including irrigation. Another goal is to improve the water and soil quality.”
“Our company was launched in 1995 when we started to export welsh onion to Japan. In 1996 we started to export ginger and garlic to Europe. In recent years, the market has become more challenging. Especially the European ginger market has gone through a downturn and exports have been very slow. The new garlic season has also not witnessed a prosperous start this summer. Increased competition and ferocious price competition now shape the market. The market is completely open, and it is easy for buyers and importers to compare the price of the crop. As a result, margins have become very small and it has become increasingly difficult to create additional value. We are launching a new strategy for the domestic market. We are investing in our garlic brand, which should stabilise our sales in China and safeguard our product quality. If this is successful, we will enrol the programme internationally. We are also researching possibilities to invest in overseas warehousing facilities. This should protect us from volatile prices in export markets.”
For more information:
Kidonn Wong
Weifang Xinyuan Food
www.xinyuan-food.com
Tel: + 86-536-8088368
Email: kidonn@xinyuan-food.com