"The current volume of garlic in storage is around 1.4 million tons. It is beyond doubt that the market can not absorb this volume before the new harvest of garlic enters the market. However, the final day of refrigerated warehouse contracts is rapidly approaching and traders with garlic in storage are eager to clean their stock before the end of March, so they do not have to extend their warehouse contract. This is the reason why the export price of garlic, which was constantly on the rise post the Chinese Spring Festival [February 5th, 2019], is finally coming down." This is according to Jenny of Laiwu Intop Import and Export Co., Ltd.
Fresh packaged garlic
"The price of garlic also rapidly increased because traders with stock in storage speculated on the garlic market. The high price resulted in fewer orders from overseas traders. Garlic traders therefore gradually began to lower the price of garlic in order to attract more international market demand. The price of garlic increased by around 1 yuan [0.15 USD] per 0.5 kg in the period between February 15th and March 15th. The largest price increase in the garlic market reached as much as 3 yuan [0.45 USD] per 0.5 kg."
Garlic factory
"In the end, the garlic price finally came down, but according to our prediction the price will not fall by much for now. The price may even bounce back in the short-term as the Indonesian market opens. The price will increase when overseas buyers purchase garlic, and fall when they do not. Garlic traders from the Middle East will also begin purchasing garlic in late March. The price fluctuation last week was significant, but we will have to wait and see in which direction the market develops."
Fresh garlic
"People in the industry say that the Chinese garlic market has been depressed for the last two years. As a result of this situation the overall surface area devoted to garlic plantation in 2019 declined. Furthermore, weather conditions were extreme this year. The garlic production and supply volumes will most certainly decrease as a result. The first fresh garlic on the market this year will probably be early-season garlic from Henan. Their price is predicted to reach around 2 yuan [0.30 USD] per 0.5 kg. That is almost three times the lowest price at the beginning of the garlic season last year, when the price opened at 0.6 yuan [0.09 USD] per 0.5 kg."
Garlic factory
"Regardless of the changes in market conditions, we do not think that the position of Chinese garlic in the international market will waver. First, Chinese garlic supply is year-round, unlike the garlic supply from production areas in Peru, Argentine, and Egypt. Furthermore, the product quality of Chinese garlic is stable. Second, there is quite a lot of speculation on the Chinese garlic market. This creates some chaos in the market, but also allows for easier control of the market."
The team of Laiwu Intop Import and Export Co., Ltd.
Contact person: Ms. Jenny
Company name: Laiwu Intop Import and Export Co., Ltd.
Telephone number: +86 13563472831
E-mail address: jenny@intopenterprise.com