The price of Chinese garlic has been fluctuating recently but the average price has slightly decreased. The garlic industry is mainly focused on the domestic market and on stocking warehouses because the price of garlic was relatively high and exports therefore slow. Still, the overall volume that enters storage is not great and processing factories purchase a certain volume destined for export.
The main reasons for the slight average price decline are as follows:
1. The purchase volume for garlic export is limited.
2. Buyers only purchase the minimum amount to satisfy demand because the price is high. They prefer to wait and see how the market develops.
3. The volume of garlic that enters storage is not large because the price is high. Traders with storage hold on to their money until the opportune moment arrives. Only a small number of traders purchase garlic to stock their warehouses.
4. Market supply is slow and traders are not eager, but the overall trade volume still slightly increased.
5. The Jinxiang garlic processing industry has not yet resumed operations.
6. Garlic processing factories still mainly buy preserved garlic rather than fresh garlic.
Source: Shandong Jinxiang Market