A continuous rise of the garlic price finally ended after six weeks, now that there has been a clear drop. In June last year, under the influence of a tight supply, the price of Yantai garlic started to rise, and continued to stay high.
The decrease in prices was caused by seasonal factors. The main reason is that a large quantity of new garlic is entering the market. When the price was high last year, the producers were able to get a rather high profit. They became even more enthusiastic, and slowly increased the production area. In May, garlic from the northern provinces, such as Shandong and Henan, started to enter the market in large quantities. At the moment, the average price of new garlic is around 3 yuan, which is much lower than the price of older garlic. Under this influence, the demand for older garlic decreases, and the price naturally drops. It is estimated that, as long new garlic continues to enter the market, the price of Yantai garlic will keep dropping.
Source: Dazhong Network