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Exports obstructed

China: 2017 garlic in storage increases rapidly

"In 2017, the garlic storage in China was around 3.48 million tons. This is an increase of almost 78% compared to last year's 1.96 million tons. That is why many garlic farmers have stopped their production, or are cautiously containing production," according to Mr. David Lee, CEO of Jining Rich Garmer International Trade Co., Ltd.

Packaged garlic for export

Fresh garlic for export

"In 2016, an increase in the garlic production area led to an almost doubling in production this year. This dramatic growth in the market supply is dragging down the export price. The current export price is around 6,000 yuan per ton. Compared to last year's 10,000 yuan per ton, that is a drop of over 40%. This year, the total garlic sales will not rise over 2.4 million tons, leaving 1 million tons for storage."

High quality Jining garlic

Sorted garlic

"At the beginning of this year, the garlic price was like a roller coaster. This was mainly because, during the harvest, farmers and traders thought the production would be very large, so they vigorously tried to sell their garlic. This led to a surplus on the market, which dragged down the export price. As traders were frantically purchasing garlic, and more traders were entering the market, there was a garlic surplus at the large ports as well, which was impossible to process. To reduce the loss, customers could only drive down the prices, or otherwise lose money. Lately, this has been getting worse, as many have now stopped buying garlic."

Garlic for export

"The prospects for the garlic market at the end of the year are not very optimistic. There is only a small profit margin. Foreign customers stop importing from China, to avoid losing money, and start importing garlic from other countries instead, such as Brazil. Furthermore, this is the busy time for customers to buy products. However, as the foreign garlic storage is so large, if there are no improvements by November, the garlic price will drop dramatically after the Chinese New Year."

David Lee (CEO)
Jining Rich Garmer International Trade Co., Ltd.
Phone: +86 158 5378 2091

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