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China: "Garlic buyers much more cautious"
"Because of the garlic production expansion and an increase in production per hectare, this year's garlic production is 30% bigger than last year's. The overall garlic price is depressed, there are large quantities in storage, and the foreign demand is rather small. Now that the new production season has filled up storages, purchasers are unwilling to order more, and are much more cautious," according to Mr. Kevin Li from Qingdao Sinonut International Ltd.
Packaged garlic for export
Freshly harvested garlic
"After the high garlic price in 2016, at the beginning of the year, the garlic price dropped rapidly, and then bounced back again even higher. At the start of the new production season, the market was rather active. Customers and storage owners all vigorously purchased new garlic, leading to an increase in prices. However, as storages were filling up, and the foreign demand was gradually decreasing, purchasers were no longer eager to buy garlic. The price on the foreign market dropped dramatically after new garlic entered the market. The Chinese garlic price dropped as well. Therefore, purchasers are now very cautious."
Neatly ordered garlic
High quality Jinxiang garlic
"The garlic market will be quite weak in the near future. There is a lot of garlic in storage, the market demand is small, and the foreign purchasing power is low. Furthermore, because of strict environmental inspections all over China in August and September, many production sites had to shut down, or temporarily close for business. However, because storage owners are suffering losses, they cannot eliminate the possibility of joint price increases. Overall, I think the prospects of the garlic market are not very optimistic."
Packaged Jinxiang garlic
"Our fields are located in Jinxiang, Shandong. We have around 100 hectares (1,000 mu), of which 30 hectares (300 mu) are already GAP approved. Our high quality garlic is exported to countries in Europe, the Middle East, Africa and South America in our 'Qingdao Sinonut International Ltd.' packaging. We have recently signed a partnership with Carrefour as well, to expand our sales in Brazil and Dubai."
Garlic for export
High quality Jinxiang garlic
"Chinese garlic has great competitive strength on the international market. Firstly, its taste is good, its quality high, and its production large. Furthermore, Chinese garlic has a long supply period, as it can supply year round. Through many years of export developments, it has opened the international market, and gained recognition from many countries. That is why I am confident about the future. I believe that the Chinese garlic industry will develop even further."
Mr. Kevin Li
Qingdao Sinonut International Ltd.
Phone: +86 139 6969 3299
Publication date: 11/1/2017
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