According to data from the Shandong Jinxiang Garlic Distribution Information Center, the average garlic price in August dropped 10.58% from the month before. That is why the number of deals has also dropped dramatically.
Garlic market predictions:
1. An inspection by the Department of Environmental Protection has influenced the production of sliced garlic, so the garlic consumption will drop.
2. In September, the schools start again, so the consumer market will boom again. The processing of garlic and rice will increase, and the production of other garlic products will grow as well.
3. According to an investigation, by 26 August, the garlic storage in Jinxiang and surrounding areas reached 1.75 million tons. Nationwide, it is over 2.9 million tons. This is a lot more than expected. From now on, only small quantities of garlic will be stored.
4. In August, because of the continuous drop in garlic prices, more storage owners started to accept garlic, but they purchased it for rather depressed prices.
5. The drop in the garlic price has led to many producers of garlic products increasing their production. This also increases the garlic consumption.
6. The garlic export has decreased. In July, 185,940 tons of garlic were exported. Compared to last year's 189,860 tons, that is a drop of 3,920 tons, or 2.06%.
7. Because of the drop in temperature in September, garlic has started to sprout now, decreasing the quality. That is why traders and garlic farmers are vigurously selling their garlic.
8. The garlic harvest from villages is done. They have quite a lot of garlic, but it is not as much as last year.
9. Because there is a lot of garlic stored this year, storage owners are not very optimistic about the future garlic price, and have started to sell garlic from refrigerated storages. Garlic of 5 centimeters costs around 2.6 yuan per 500 gram to store. For garlic of 5.5 centimeters, it is 2.7 yuan, and for 6 centimeter garlic 2.7 to 2.9 yuan per 500 gram. The preservation of the garlic in storage will most definitely influence the sales.
To sum up the points mentioned here, it is estimated that in September the garlic price will steadily rise.
Source: China Rural Capital Network