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China: "The new season will bring further difficulty to garlic export"

"In the last two years, the market conditions for garlic have been hot. The retail price was constantly climbing. However, the high profit that traders received from garlic sales caused interest from others who subsequently entered the business. This led to a sharp increase in the number of garlic plantations throughout the country. In the end the increased number of garlic plantations caused supply to exceed demand. Whether it is on the domestic market or on overseas markets, the garlic volume exceeds the market ability to absorb supply." This is according to Mr. Liu Qingfeng of Junan County Greenfood Co., Ltd.


Sales manager Allison Zhang (middle) of Junan County Greenfood Co., Ltd. at their company booth at Fruit Logistica in Berlin


Jinxiang garlic kept fresh

"The market conditions for garlic export in particular are less than ideal. The current export price of garlic is only at 50% of the export price from the previous year. The export volume also shows a clear decline. This is primarily because, on the one hand, the available export volume has increased suddenly. The export markets are unable to absorb a large part of that volume. On the other hand, countries such as Spain, Argentine, India, Brasil, and Egypt have gradually expanded their garlic plantations in response to the relatively high price of Chinese garlic in the last two years. This has decreased the demand for Chinese garlic from these countries."


Group photo of sales manager Allison Zhang with other traders who participated in Fruit Logistica


Exquisitely-packaged export garlic

"In recent years the processing factories produced by-products with the garlic supply that the market could not possibly absorb. Turning garlic into by-products, however, is a process that causes much environmental pollution. This year, the Chinese Environmental Protection Department carried out vigorous supervision and implemented restrictions on processing businesses. This has caused a sharp decline in the volume of processed garlic by-products. The restrictions on garlic processing further ensure that the current volume of garlic in warehouses greatly exceeds the volume of demand. According to our observations and estimations, the new round of the garlic production season that starts in May will lead to another bumper harvest, unless extreme weather conditions intervene. We are afraid that an even greater supply volume will bring further difficulty to garlic export."


Group photo of sales manager Allison Zhang with other traders who participated in Fruit Logistica


Export shipping containers fully loaded with garlic

"This company owns more than 333 hectares of garlic plantations in Jinxiang. The plantations are collectively managed with local farmers in a cooperative construction. The variety of garlic that we produce includes purple skin garlic and pure white garlic. The garlic is shipped through Qingdao port under our own registered brand "Greenfoods" as well as under guest brands. Our garlic products are predominantly exported to the European Union, West Africa, South America, Brasil, and Caribbean countries."

Breeze Liu
Junan County Greenfood Co., Ltd. 
Telephone number: +86 136 7120 5136
E-mail address: Breeze@garlic86.com

Publication date: 2/20/2018


 


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