The Chinese garlic harvest was abundant in 2020, and product quality was better than in previous years. The price initially dropped because of the large production volume. Only a few traders entered the garlic market to speculate. The Chinese garlic market was calm and stable. The price remained low for several weeks, but then began to warm up slowly. Helen of Ju'nan County Green Valley Foodstuffs Co., Ltd. recently talked about the current conditions in the Chinese garlic market.
Labor was scarce in production areas because this is the busiest season on the farm. The price of garlic processing also increased significantly. Some processing factories even reduced the number of small packages and focused on larger packages to keep the processing costs low. But now that the busiest season on the farm is coming to an end, the cost price of labor is returning to normal. And processing factories are returning to normal business as well.
The excessive production volume created a situation where market supply greatly exceeded demand. The price consequently dropped. When fresh garlic just entered the market, the purchase price was only around 1.2 yuan [0.18 USD] per 0.5 kg. That is much lower than around the same time last year.
"The garlic price has been quite low in recent months. Up until last week, the export price was only as low as 790 USD per ton. However, last Friday the price began to rise. The current export price is around 850 USD per ton. The main reason for this price increase is the growing volume of orders from the Indian market. The garlic price hit a low point and is now bouncing back. The price increased by more than 0.10 yuan [0.01 USD] per 0.5 kg," said Helen. "But consumer power in the European market is still not back to normal because of the continued Covid-19 pandemic. The situation is still alright in Southeast Asia, the Middle East, Central and South America."
Ju'nan Green Valley Foodstuffs cooperates with farmers in Jinxiang, one of the major garlic production areas in China. The company controls garlic plantation on a surface area of more than 333 hectares. The company mainly exports garlic to Europe, West Africa, Central and South America.
For more information:
Ju'nan Green Valley Foodstuffs Co., Ltd.
Tel.: +86 15666337366