Market conditions last week were not hopeful. The price of preserved garlic kept falling. The trade volume showed a slight increase, as did the trade value. The main reasons for this development are as follows:
1. There is a large stock of preserved garlic in storage, which is facing its due date. The surface area devoted to the production of fresh garlic is increasing, which means that the production volume will increase. Traders with stock reduce the price to sell their stock. Purchasing traders subsequently force the price down even further, and the price keeps falling. Traders predominantly buy according to the needs of the processing factories.
2. Traders who buy according to the needs of factories that process for export have become more enthusiastic and their purchase volume has increased.
3. The demand for garlic cloves is great. The purchase volume of garlic cloves for processing factories has increased. Traders mainly purchase mixed-quality garlic.
4. Garlic slice processing businesses have temporarily halted their operations and are waiting for the plenary session of the People's Congress to finish before they can restart operations. However, their purchase volume is not that large.
5. Fresh Yunnan garlic entered the market in large volumes. The taste of fresh garlic is better than the taste of preserved garlic. The price of fresh garlic is not high, so consumers tend to prefer fresh garlic. Fresh Yunnan garlic has already been dispatched to supermarkets throughout the country. The large volume of fresh Yunnan garlic will damage the salesl of preserved garlic. In some parts of the country fresh garlic takes up a market share of around 70%.
Source: d1cy.com