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China: The risks underlying garlic growing expansion

This year's garlic prices remain high, which caused a boom in cultivation. It is said that the garlic growing farms of Heze, Linyi, Liaocheng and other counties in Shandong province, have all expanded. The area of farms growing garlic in Xuzhou and neighbouring counties has increased by thousands of hectares and those in Yunnan, Henan and Jiangsu provinces increased by 20%-30%.

Following the price hikes and the increase of garlic cultivation areas, the costs connected with growing garlic have also skyrocketed. 

At this moment, the purchasing price of 1mou (115th of a hectare) of land where garlic is grown has exceeded ten thousand yuan. Considering the fact that garlic prices have been rising in 2015, as well as in 2016, and the retail price reaching a critical point of 10 yuan, surpassing even the peak prices of 2010, it could be said that even with the risks involved, growers and investors are paying close attention.
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