Driving prices up

Large volumes of Chinese garlic entering storage

The Chinese garlic market has remained stable for a month, but with the volume in storage gradually growing, export prices have now shown an increase. However, as the increase in prices in overseas markets is slower than that in the Chinese market, the import price has been higher than the market price in some markets. Christian, the head of Shandong Fortunate Farm Trade Co. Ltd talked about the recent garlic market.

“The purchase price in China was relatively stable in June. The price of mixed-grade with a diameter of 5 to 5.5cm remained at 1.15 -1.20 yuan/half a kilo with little change. From June 24, the purchase price started to increase slowly. On July 21, the price of average-sized mixed-grade garlic in Jinxiang area was 1.65-1.73 yuan/half a kilo, that of medium-sized mixed-grade was about 1.78-1.85 yuan/half a kilo, and that of large-sized mixed-grade was about 1.85-1.95 yuan/half a kilo,” Christian said. “The purchase price this season is about three times lower than last year’s 4 yuan per half a kilo. The low price attracted a large number of storage garlic traders to enter the market in early July. The increasing volume being put into storage and many traders hoarding outside the storage have further driven the price up.”

“Because of potential germination, the process of putting garlic into storage is expected to end around August 20th. Due to the large production and low price this season, the volume of storage garlic is likely to exceed 4 million tons, breaking the historical record. However, for these traders, the price of the first and second volumes to enter storage was low, so they can make profits if the goods are shipped in time, but for traders who are putting garlic into storage now, as the current price is 1.7-1.9 Yuan/half a kilo, the cost is much higher and there will be certain risks if they cannot sell them in time."

“Many overseas markets have recently been sluggish. In some markets, import prices have even been higher than market sales prices. This is mainly due to the fact that volumes from large purchases made in May and June have not yet been cleared. This, coupled with the impact of Covid-19, led to small import volumes in July. At present, we export about 4 containers per week, slightly lower than normal.”

"How the garlic market will develop in the next few weeks depends mainly on the actions of storage garlic traders and development of Covid-19 in overseas markets,” Christian said.

Shandong Fortunate Farm Trade Co. Ltd is a specialized garlic exporter in Jinxiang, China. "China's exports account for 70%-80% of the world's total garlic exports, so the international market largely depends on the development of the Chinese market, and traders’ control of the market is very important. We hope to share our insights into the market in addition to providing high-quality garlic, so as to provide our customers with the best service."

More Information:
Contact: Christian
Company: Shandong Fortunate Farm Trade Co. Ltd,
Tel.: +86 15265793002
Whatsapp.: +86 15265793002
Email: fortunatefarm@hotmail.com

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