Chinese garlic price is rising, but the farmers are still making a loss

The Chinese garlic market did not develop as farmers had expected. This is mainly because many farmers blindly followed the trend and expanded the surface area devoted to garlic plantation. The market conditions were good last year. That is why farmers expanded the surface area devoted to garlic plantation. The overall surface area increased by more than 20%. That is why some of the garlic became unmarketable this year. The prospects are not positive.

The price of garlic was only around 0.5 yuan [0.07 USD] per 0.5 kg in late spring. Afterwards, the price gradually began to rise and reached 0.65 yuan [0.09 USD] per 0.5 kg. The price rise recently picked up speed. The current price of top-quality garlic is already around 1.25 yuan [0.18 USD] per 0.5 kg.

Although the price is rising, the cost price was relatively high, so farmers are still suffering financial loss. Only if the price of dried garlic reaches 2.2 yuan [0.31 USD] per 0.5 kg, only then do farmers make a profit.

As the weather is slowly warming up, garlic consumption will increase as well. Furthermore, garlic has disinfectant qualities, that is why there is a growing demand. The price is expected to continue rising in the second half of this year. Although the price rise will be limited, the price may exceed the cost price and bring garlic farmers some profit.


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