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"Speculation in the Chinese garlic market leads to increased profit in the export market"

The domestic market price of Chinese garlic was quite high last season and showed no signs of coming down. Not only did the high domestic price not deter export, but the export price in turn began to rise as well. Manager Qi of Laiwu New Morning Bright Foodstuffs Co., Ltd. recently talked about current conditions in the garlic export market.

"The garlic production volume in Shandong production areas declined by 30% in 2019. The current export price is almost twice that of last year. One ton of garlic costs around 1,300-1,500 USD. The main reason for the rising price is a change in the relation between supply and demand. We still have around 2,000 tons of garlic in storage at the moment. The garlic reserve is larger than around this time last year." When asked about the new garlic production season, manager Qi explained, "the overall surface area devoted to garlic plantation in Shandong production areas expanded by around 20% this year. When the new garlic harvest enters the market, the price will come down."

"Our main overseas markets are in the Middle East and Europe. We export around 7,000 tons of garlic per year to the Middle East and around 2,000 tons to Europe. We also export 1,000 tons of garlic to Southeast Asia," said manager Qi. "Our annual export volume has been stable in recent years. Many domestic garlic traders stockpiled garlic last year and engaged in speculation on the garlic market, but this was only positive for exporters. Garlic is a product with rigid demand, because many people use garlic to flavor their cuisine, and overseas demand always exceeds supply. Speculation in the garlic market pushed the price up and this created a wider profit margin for exporters."

Laiwu New Morning Bright Foodstuffs has an annual garlic export volume of around 10,000 tons. This is the first year that the company will participate in the Berlin Fruit Logistica on February 5-7. All visitors are welcome at their company stand in hall 27 at booth E-02. "We hope to meet many new clients in Europe during this Fruit Logistica."

For more information:

Qi - Manager

Laiwu New Morning Bright Foodstuffs Co., Ltd.

Tel.: +86 139 6340 4735 


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