"Our garlic processing factory is located in Laiwu, Jinan. We officially resumed operations on the 16th of February. The production speed was initially slow because we had a shortage of workers. We were only able to produce the first complete shipment by the end of February. This shipment is expected to arrive in Europe by the end of March." This is according to Manager Zhang Chunjian of Jinan City Wan Xin Food Co., Ltd.
"The domestic sales volume of Chinese garlic outweighs export by 1.7:1. There is a close connection between domestic market conditions and the price of garlic export. Restaurants in China temporarily halted operations during the COVID-19 outbreak and consumer power also declined. The domestic market is unable to absorb as much garlic as last year. The difference is more than 300 thousand tons. The market price of preserved garlic also dropped by 15% as a result of this change in supply and demand. The weak domestic market had a direct impact on the export market. The current price of preserved garlic exported to the European market is around 1,400 USD per ton, which is around 20% lower than the price prior to Chinese Spring Festival [25 January, 2020]."
"Up until now, our overall export volume this year declined by almost 50% in comparison with the same period last year. The main reason for this development is the COVID-19 epidemic. The processing speed slowed down and we were unable to deliver overseas orders on time."
When asked about future developments in the garlic export markets in the coming weeks, manager Zhang replied: "I believe that market conditions will continue to decline for the foreseeable future. Fresh garlic will arrive on the market in May and this will further impact the garlic price. Furthermore, the overall surface area devoted to garlic plantation epxanded by 25%-30% this year and the production conditions were excellent in most major production areas. In addition, the reserves of old garlic are currently quite large. If the market can not absorb these reserves before fresh garlic enters the market in late May, then the market price will undoubtedly show even more severe decline."
When asked whether the spread of COVID-19 to Europe will affect Chinese garlic companies, manager Zhang explained: "The consequences of the COVID-19 epidemic in Europe have not yet affected our business. Our volume of orders is still quite regular. however, I believe that as the COVID-19 epidemic in Europe will continue, the market demand and supply speed will both suffer. At that time our export volume may reach a second low point."
In addition to garlic, Jinan Wan Xin Food also exports fresh ginger, onions, and apples. The company exports to Europe, the Middle East, South Asia, North America, and South America. The company has an annual export volume of around 2 thousand shipping containers.
For more information:
Zhang Chunjian - Manager
Jinan Wan Xin Food Co., Ltd.
Tel.: +86 13561730391