Since the end of February this year, the price of garlic has been on an upward trend. Until recently, the market has changed, showing a generally stable trend. Ms. Wendy Qin from Shandong Xiangsheng Import and Export Co., LTD, spoke to FreshPlaza.
"Now is the end of the old garlic production season, and the new garlic will be on the market at the end of May. The price increase of garlic this season began after a heavy snowfall in the north in February. Some garlic traders used this to hype the topic of "garlic production reduction" to stir up the price. Since then it has been rising along with the trend and is still at a high level. Judging from the current situation, it is unlikely that the production of new garlic will be reduced. Although the planting area of garlic has decreased, it has little impact on the overall output, and there is no sign of a reduction in yield per unit area."
"Currently the garlic price is too high, beyond the acceptable range for customers, and the transaction volume is low. Taking the hybrid 5.5 variety with the greatest demand as an example, the current price has risen to USD1200/ton, while it was about USD900-1000/ton in the same period last year. The price in normal years is USD800-900/ton. Compared with the normal years, the current price has increased by about 40%. Even if the trading volume is small, the price still continues to rise rapidly. But in recent days, prices have begun to show a steady trend. "
"Chinese garlic accounts for more than 90% of the international garlic market, and its output and quality are stable. Therefore, even if there are competitors such as Indian garlic, foreign garlic buyers may not easily change their origins, but the sales are slow at present. In previous years, when new garlic came into the market, the price would drop, but this year's market trend is difficult to judge."
Shandong Xiangsheng Import and Export Co., Ltd. has been engaged in the garlic export business since 2006. The export market includes Central and South America and Eastern European markets. The annual export volume is about 300 containers.