Chinese garlic exports dropped by 16.53% in September

China exported a total of 1.17 million tons of fresh and refrigerated garlic in the period between January and September, 2019. That is a decline of 104 thousand tons or 8.16% in comparison with the total export volume of 1.27 million tons in the same period last year.

The export volume in September was smaller than in the previous three months (June, July, August). Export markets have strict standards for garlic. The garlic currently in open field farms is beginning to sprout and is therefore not qualified for export. Most exporters switch to garlic from warehouses around this time of year. However, the price of garlic from storage is not stable. The enthusiasm of buyers is limited and so the volume of shipping containers export from China is reduced. Furthermore, labor costs went up during the festive periods of Mid-Autumn Festival [13 September, 2019] and National Day Holiday [1 October, 2019]. That also had an impact on garlic export.

The period when buyers stock their warehouses with garlic is already coming to an end. Most exporters have begun to sell garlic from storage. The cost of storage is high, which puts pressure on the price of garlic. When traders stop storing and start selling from storage, they are eager to empty their warehouses. Buyers are able to put pressure on the price, which generally shows a downward trend during this period.

Most exporters focus on exports of processed garlic to Indonesia, although the volume of orders from South America, Africa, and Southeast Asia also increased in October. The decline in exports of garlic from India also stimulates the export of Chinese garlic. The price increased by 2 thousand yuan [285.32 USD] per ton in one month. The export volume is expected to increase again next month.

Source: 51garlic.com


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