The new harvest season of Chinese garlic recently entered its final phase. New and old garlic are available at the same time. Still, the garlic price is rising. The price of garlic was quite low last year. The price this year exceeds all the expectations of farmers and traders. However, because the price is still rising, many people in the garlic industry are hesitant to sell and prefer to wait and see what happens. People in the industry predict that fresh garlic will become the "driving force" of the garlic market. The price may continue to rise in the short term, but the price increase will not be large.
He Tan, data analyst at Zhuochuang Information, explained that the price increase of Chinese garlic is on the one hand a result of the extremely low price of garlic last year. On the other hand, as old garlic gradually retreats from the market and fresh garlic supply slowly grows, many traders purchase large volumes of fresh garlic to air-dry them. The price of fresh garlic therefore rises. When the price of fresh garlic is high, even the price of preserved garlic from refrigerated storage slowly climbs.
Preserved garlic from refrigerated storage becomes more difficult to sell after June 15th because the supply of fresh garlic rapidly grows. Traders with preserved garlic in storage are therefore eager to sell their stock. He Tan predicts that the price of garlic will continue to rise slightly in the short term, but not very high and not for long.
Source: Sannong Zhongguo