"The COVID-19 pandemic spread to overseas markets more than a month ago. This pandemic has had an immense impact on our sales figures. The short-term fluctuations in the garlic market were numerous. Furthermore, the garlic export market is somewhat depressed, but Brazil has been an exception. The volume of our garlic export to Brazil greatly increased in comparison with the same period last year." This is according to manager Fang, a spokesperson for Shandong Xuanyi Food Co., Ltd. She recently talked about the current conditions in the garlic export market.
"The domestic garlic market opened in early March and we began to export large volumes of garlic products. However, conditions in overseas markets began to decline in early April. Importers gradually slowed down the pace of garlic trade. We saw our garlic export volume decline even further as the COVID-19 pandemic became even more critical. The volume of orders we received from Europe and North America in particular declined by nearly 50%. Our export to the Middle East and Africa also decreased by 20%. As for Asia, Indonesia has a government quota for garlic import and some buyers still order garlic from China, but in other Asian countries the import volume significantly declined," explained manager Fang.
"While our export to most countries is in decline, the export volume destined for Brazil expanded by nearly 50%. We export a steady volume of 8-10 shipping containers per week. This is mainly because Brazilian market demand remains high, which is not the case in other countries. Taking advantage of this opportunity, we have expanded the number of retail channels in Brazil and we hope to establish business partnerships with new clients in this growing market," said manager Fang.
"The export price of regular-quality preserved garlic destined for the Brazilian market is currently around 1,800 USD per ton. The export price of medium-quality garlic is still around 1,500 USD per ton. This price is 5% higher than around this time last year," said manager Fang. "The sales season of preserved garlic is almost over. The new harvest season is about to begin. We expect fresh garlic to enter the market in early May. Afterwards, the price of garlic will likely drop even further. Some importers deliberately slow down the garlic trade until fresh garlic arrives on the market. The number of orders is then expected to increase."
Chinese garlic looks beautiful and the flavor is sharp, which is why the garlic is so popular in overseas markets. "We exported 3 thousand tons of fresh garlic last year. The market potential of Africa is growing quickest. At the same time, we are also looking at the markets in South America. We hope to further expand the garlic market in South America and establish close business partnerships with even more clients in Brazil," said manager Fang.
Shandong xuanyi Food was established in 2006. The company is specialized in the production, processing, and export of garlic. In addition to fresh garlic, the company also sells dried garlic powder, garlic cloves, garlic slices, and black garlic.
For more information:
Ms. Jocelyn Fang
Shandong Xuanyi Food Co., Ltd.