The Chinese garlic market has only gone in one direction since the start of the season, and that was down. “However, the bottom was reached last week. As of last week, prices started rising slightly. The biggest cause isn’t so much export of the product or local consumption, but the start of purchasing by industry, which uses the garlic to make flakes, powder and pasta,” says Danny Deen.
“Compared to regular years, garlic prices were extremely high last year, and there was no product left at the start of the new season. Normally, industry buys all of the old harvest at the end of the season for cheap prices. That didn’t happen last year due to the high prices, that’s why the industry entered in the middle of the season this year, and that’s how the bottom was made,” the importer explains.
“The quality of the Chinese garlic is perfect this season. It has several skins, there are few to no problems internally, and the size is also good. There are fewer smaller players in the garlic field as well, and the market is dominated by the larger, but more professional, packing stations. The advantage of this is that they have much experience with the requirements for garlic in Europe,” Danny continues.
Spanish garlic
Spain also had a large garlic harvest this year. “However, Spanish exporters also have a lot of garlic with problems. They’ve sold these for cheap prices. But now that these have been mostly taken from the market, an increase in prices can also be seen here, and the bottom has been made,” Danny says. He doesn’t expect much garlic to come to Europe from Argentina and Chile this year. “The prices from these origins are traditionally much higher than from China and Spain, and considering the current market, these origins won’t stand a chance on the European market this season.”
“The consumption of garlic is traditionally higher in the colder months than in the summer months, and that is also reflected in sales. All in all, it was a difficult first half of the season, but we are now positive about the second half,” the importer concludes.
For more information:
Danny Deen
Denimpex
Sint Antoniesbreestraat 10
1011 HB Amsterdam – the Netherlands
Phone: +31 (0)20 624 63 90
Danny@denimpex.nl
www.denimpex.nl