The garlic export sector ended 2018 with a significant increase in export volumes. In the last 5 years garlic has been constantly growing. In 2015, however, it fell, mainly because of the smuggling of Chinese garlic into Brazil, which was reduced with the agreement promoted by ProMendoza with the Chambers of garlic from Mendoza and Brazil (Asocamen and Anapa).
In 2018 the volume of garlic sold increased by 29.21% over 2017; as it went from 59 thousand tons to 76.2 thousand.
Even though there was a drop in international prices, as a result of China's record harvest, the devaluation helped to lower that drop. "It is important to highlight that the companies were not so affected by the fall in prices because there was an internal recovery in the price of the dollar. In 2017 we exported with a dollar of 18 pesos and in 2018 with a dollar of 30 pesos," stated Mario Lazzaro, the managing director of ProMendoza.
"Since the garlic is a commodity product, ProMendoza aims, above all, to increase volumes, which feeds the entire export chain feeds and maintains the engine of the economy going. China exports 78% of the international garlic and Argentina only 3.8%, so we can not decide prices," said Lazzaro.
Mendoza continues its business intelligence
Since 2016, ProMendoza has been carrying out actions to protect Mendoza's garlic in Brazil. In 2018, it resubmitted the antidumping duty request for the Chinese garlic of lower quality and the maintenance of the 35% tariff for countries outside Mercosur.
In addition, it works in a sustained manner with the State of Santa Catarina, Brazil, to increase sales in that country.
They also conduct technical and commercial missions to Italy, Holland and France on behalf of the Province to take advantage of the productive counter season with the rest of the world and increase sales to those markets.
Outlook for 2019
"The area of garlic in China has fallen by around 15%, so we expect prices will improve this year, because a lower supply should lead to an increase in international price," Lazzaro stated.