Jining Greenstream

China adds 45,000 hectares of new garlic plantations

"Our research lasted for six days, from 16 May until 21 May 2017, and comprised a journey of over 3000 km. We have visited the main export sites for Chinese garlic: Jinxiang and surroundings in Shandong, Pingyi, Laiwu, Zhongmu in Henan, Qixian, and Pizhou in Jiangsu. These sites constitute 70% of the total production area in China. It can be said that 90% of the exported garlic comes from these areas. This year's garlic is already entering the market, while the harvest in these areas is almost coming to an end," according to Kevin Chan, export manager at Jining Greenstream Fruit & Vegetables.

"The quality of this year's garlic is rather good, and there is an increase in the production volume. However, the production volume of the 4.5 cm crops is lower than last year. According to our research results, the production area in 2016 was around 187,500 hectares (2,812,900 mu). In 2017 it is 2,32,400 hectares (3,486,000 mu), which means that the production area has grown around 45,000 hectares (660,000 mu)."

"Because there has been no extreme weather, the production volume of garlic from Henan, Laiwu, Jinxiang and surrounding areas has grown by around 1.2 million tons compared to 2016. This is a growth of 45%. Garlic from Jinxiang, Laiwu, Pingyi and Pizhou suits the European and Latin American market, while garlic from Henan suits the Middle-Eastern and South-East Asian market. This year, the standards for garlic will be better than in 2016. The proportion of 4.5 cm garlic will be 12.5%. The 5.0 cm garlic will be 27%, the 5.5 cm garlic 34% and the 6.0 cm garlic 26%."

"In 2017, the national garlic production area was 333,333 hectares (5 million mu). Compared to 284,650 hectares (4.27 million mu) in 2016, this is a rise of 17%. The total production volume of 2017 is estimated to be 39% higher than in 2016. These last numbers come from the China Agriculture Research Report."

"The production area of white garlic has not changed in 2017. The production volume has grown by 20% compared to 2016. The shipping of the first batch of 4.5 cm and 5.0 cm garlic will be around 5 June. The first batch of 5.5 cm garlic will be shipped around 8 June. Shipping of the first batch of 6.0 cm garlic will be after 12 June, and the small packaging of garlic will be shipped around 12 June."

Influential factors on the garlic export volume and price

Domestic speculation:
The growth in production area and volume in 2017 are clear. This creates a sufficient supply on the garlic market. This means that domestic speculators are behaving rationally towards this year's garlic, which decreases speculation. It is estimated that the garlic market will gradually be restored to normal, and that the garlic price will continue to be low.
Demands of the Chinese domestic market:
In China, the domestic demands are getting bigger every year. Because of this, the domestic market can accept a high price for excellent garlic. The domestic market demand plays a stabilisng role with regards the price. The expansion of the domestic demand over the years plays an active role on this year's garlic market. Demand for excellent garlic keeps growing over the years, but because the supply this year is very big, it is estimated that this will not have a very large influence on the future garlic market.

In summary, the garlic price will most likely continue to stay low in the future.
For more information:
Kevin Chan
Jining Greenstream Fruits & Vegetables Co.,Ltd
Contact number: +86 1525 3798 168

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