China, as one of the biggest suppliers of garlic worldwide, still has a large amount in stock. With the coming Chinese New Year, more overseas companies are buying garlic to make sure they still have a supply when China is celebrating its holidays.
Mr. Breeze from Junan County Greenfood Co., Ltd. explained how the current garlic market was performing: “The conditions are quite stable, we have about the same amount of orders as last year during this period. There is still a lot of garlic in cold storage, but because the Chinese New Year is almost coming, a lot of people are buying garlic now to avoid not having any during the Chinese holiday. Therefore, even though the supply is higher than the demand, which normally will cause a lower price, the current conditions mean that the price is quite stable and even a bit higher than normal. The current export price is about 1400 dollars per ton.”
“Another reason for the stable operation of the garlic market is that sellers are not in a hurry to sell. A lot of sellers had to store their garlic in cold storage and the price for storing was quite high this year. In July and August of 2019 there was still a high price, so then it was no problem for the sellers; they could still sell their garlic for a higher price and make some profit. However, the current price for garlic is much lower, and sellers are putting off selling to gain a higher price later. If they sell now they will lose money, because the current price won’t cover all their costs. All this has affected the supply on the market, which causes a more stable price, because garlic won't flood the market.”
“We are exporting to many different countries, for now we have a lot of demand from the Caribbean islands, the Middle East and South Africa. For Europe the demand is not so much right now, because a lot of local garlic is now available on the market. Most European garlic now comes from Spain, France, and Italy. It is more difficult for us to compete with their garlic because we also need to pay high import taxes for exports to Europe. So we are now focusing on other markets. ”
About how the new garlic season would look like, Breeze said: “Furthermore, I expect that the output for the new crops of 2020 will increase. It is still hard to predict how much the garlic output will be for 2020, but the planting area increased this year, so therefore I expect that the output would increase too.”
Junan County Green Food has specialized in garlic and ginger export for more than 10 years. The company can guarantee a stable supply and reasonable prices. Junan County Green Food will attend the Fruit Logistica Exhibition in Berlin to further expand its activities in overseas markets. All participants are welcome to visit the company booth in Hall 27 at booth F-05I.
For more information:
Junan County Greenfood Co., LTD.
Junan Xiangsheng Imp.&Exp. Co., LTD
Address：Laopo town, Junan county, Shandong province, China
Email: email@example.com firstname.lastname@example.org