The period when purchasing traders stock their storage with fresh garlic is almost over. FreshPlaza recently talked to a Chinese garlic exporter about the garlic market conditions. He stated that the market continued in the same depressed fashion as the previous two years. It is difficult to say whether conditions will improve next year, but based on current conditions prospects are not great.
Garlic
Packed garlic
He further stated that the purchasing price of fresh garlic remained low this year, only around 1 yuan [0.15 USD] per 0.5 kg at the beginning of the season. The price decreased by 50% in comparison with the 2 yuan [0.3 USD] per 0.5 kg last year, and the price decrease did not stop there. By June the price had fallen to 0.7 yuan [0.1 USD] per 0.5 kg. The price rapidly increased in a short period in July as large-scale purchasing traders began to buy garlic in large volumes and capital in the market increased. The current price is about 70% higher than it was at its lowest point this year. The period in which purchasing traders buy garlic to stock their warehouses is coming to an end, but the quality of garlic is also declining. Top-quality garlic is relatively scarce. Traders are eager to obtain the last top-quality garlic on the market, which further drives the price up.
Garlic
The fresh garlic harvest begins every year in mid-May in production areas in Shandong, Henan, and Jiangsu. The export season begins in June. Only garlic entered in storage before August 20th is guaranteed to maintain product quality during long-distance export. The garlic that is entered after August 20th is mainly destined for the domestic market and neighboring countries in Southeast Asia.
Garlic
As for the overall conditions of export, the export volume decreased by around 30% in comparison with the same period in the previous year. Overseas traders show little enthusiasm. On the one hand, garlic production areas in Brazil and Spain expanded production in the last two years. These countries are mostly able to satisfy their own domestic market demand and in some cases they even export to nearby countries. On the other hand, the export price of Chinese garlic increased in recent years. Overseas traders are hesitant and prefer to wait and see if conditions improve. They expect the price of garlic to drop when the warehouses open up in September.