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"Surface area of Chinese garlic farms in Shandong increased by 20% this season"

"The price of Chinese garlic remained high in 2019 and showed no sign of coming down, but the high price did not have a significant effect on Chinese garlic export. The overall surface area devoted to garlic plantation in Shandong production areas expanded this year. We expect the price of garlic to show a downward trend next year." This is according to David of Ji'nan Wantao Food Products Co., Ltd. who recently shared his view on price developments in the Chinese garlic market.

"Many farmers suffered financial losses in 2018, because the price of Chinese garlic was very low. They decided to plant different crops rather than risk even further financial loss. The overall surface area devoted to garlic plantation in Shandong production areas decreased by 30% in 2019. The reduction in production volume changed the balance between market supply and demand. The price of Chinese garlic subsequently increased. The garlic price remained high in 2019 and showed no sign of coming down," explained David. "Since the garlic market conditions were quite good in 2019, many farmers then decided to begin planting garlic. The overall surface area devoted to garlic plantation expanded by 20% in comparison with last season."

"The current export price is 1,350 USD per ton, which is more than 30% higher than around this time last year. Garlic is an essential flavor in the food industry, which means that even when the price is high, our export volume does not significantly shrink. The volume of overseas orders does not decrease either. Although every year there are garlic traders who speculate, their influence on the garlic market is not big either. The deciding factor for the price of garlic in the overseas market is still the relation between supply and demand. I expect that the price of garlic will show a downward trend only after fresh garlic enters the market in June," said David.

Wantao Food Products has refrigerated warehouses with a capacity of more than 10 thousand tons. "We will make estimates of the overall surface area devoted to garlic plantation, the relation between supply and demand, and the capacity of the domestic market to absorb garlic supply, and we will adjust our storage volume according to market conditions. We currently have around 1 thousand tons of garlic in storage."

The garlic plantation of Wantao Food Products is located in Laiwu, Shandong, and covers 80 hectares. The company also cooperates with local farmers and makes sure their garlic meets the strict product quality standards of Wantao Food Products.

"Overseas markets, and the European markets in particular, have tightened their standards in recent years. We are constantly improving the level of our garlic plantation and processing facilities to make sure we meet the requirements," explained David. "Although the requirements for product quality are constantly rising, the overall volume of orders from European markets is not growing smaller."

"We export around 20 thousand tons of garlic per year. Our main markets overseas are in Europe, North America, South America, and Southeast Asia. We also export a small volume to Africa. We have always maintained close relations with overseas buyers."

"This year, on February 5-7, we will participate in the Berlin Fruit Logistica. We hope to use this opportunity to meet in person with a large number of our clients, and of course we hope to make new friends too," said David.

The stand of Ji'nan Wantao Food Products can be found in Hall 7.2b at booth A-07.

For more information:

David

Ji'nan Wantao Food Products Co., Ltd.

Tel.: 0086-13561730391 

E-mail: wantaogarlic@china.com 


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