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China: Market price for garlic from Shandong province in steady decline

In 2017, garlic plantations in Jining city's Jinxiang county covered 40.000 hectares, which is 4 hectares more than the year before. Moreover, the weather conditions this year were better, which caused the output everywhere to increase. Currently, the amount to be stocked amounts to 2.5 million tons approximately. In comparison to the 1.65 million tons of last year, this has increased by about 50%. The storage capacity of storehouses in Jinxiang county and surrounding regions will soon be saturated. The market shows a situation in which supply exceeds demand, so the price for garlic has gradually dropped to more or less 0.3 EUR (2.3 RMB), while right after the harvest, mid-June prices for stocked garlic was still 0.35 EUR (2.7 RMB). The market price is persistently dropping. 

At the same time, a large scale promotion has safeguarded garlic for this year, while garlic farmers continued to expand their plantations. Moreover, garlic sales actually did not grow and did not take the shape of positive market mechanism of the union of production and marketing. The manufacturing capacity of dehydration firms for garlic is limited. The newly harvested garlic cannot immediately be cut into pieces and sold. Currently, garlic dehydration companies generally keep a hopeful attitude and pray that the price of garlic won't go up in the near future. 
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