In the beginning of the supply period of Spanish garlic, the expected value for the producers is very high. However, the Spanish garlic industry is influenced by changes in the production volume in China, the largest production area worldwide. China has suffered from poor harvest over many years. This year, there will be a production surplus, which means that the price will drop dramatically. This means that Spain will lose two important target markets: Brazil and Taiwan.
This domino effect will cause the Spanish garlic price to drop and sales to slow down. Producers are now waiting for the international market to change. Experts in the industry have revealed that if China will not sell its surplus, the market price will change in the short term, and go back to its original level.Moreover, Spanish producers can feel more secure because of the set quota by the European Union. The regulation is that European countries can only import 55 million kg of garlic from China, and 19 million kg from Argentina. Other third countries are only allowed to import 6 million kg.
Source: Foods1.com