Fresh garlic entered the market in late May this year and the season lasted until early September. The price has recently shown a gradual rise. The sales season of cold storage garlic began in the middle of September. The price started out stable but then began to fall. The average price had declined by 0.30-0.40 yuan [0.04-0.06 USD] per 0.5 kg by the 10th of October. Last week, however, the garlic price showed a strong recovery. Traders in the garlic market are now hesitant to sell as they hope the price will rise even higher.
CEO Henry Zhang visits the garlic processing factory
Garlic processing factory
"Our company exports garlic to a wide variety of overseas markets including South Asia, Southeast Asia, the Middle East, and Africa. The overall export volume expanded in comparison with the same period last year. The volume of garlic still in storage is currently around 50% smaller than last year, but the export price is also 50% lower. For example, red garlic (5 cm) from cold storage sold for 2.1-2.2 yuan [0.32-0.33 USD] per 0.5 kg on the 17th of October. The average price on that date in the last 19 years was 3.7-3.8 yuan [0.56-0.57 USD] per 0.5 kg." This is according to Henry Zhang, CEO of Jining Fangda Import and Export Co., Ltd.
The garlic plantation season begins every year around Mid-Autumn Festival [October 1, 2020]. The plantation season is already over now. Data from Jinxiang production areas shows that the overall surface area devoted to garlic plantation declined by 10% this year. That is why the price of cold storage garlic has been on the rise in recent weeks. Traders are eager to store garlic and reluctant to sell too early.
"The export market is vulnerable to price fluctuations. Exporters will see their order volume decline as the price rises. In the end, the 2020/2021 garlic export market is shaped by many different factors and there will be many challenges. The Chinese garlic market is quite organized. The market absorption volume and the consumption volume are both stable. When export declines, the domestic market takes a slightly larger share of the garlic supply volume," explained manager Zhang.
Garlic processing volume
The Covid-19 pandemic still affects many markets across the globe. Many countries currently experience a second wave. Restaurants are once again temporarily closed. This has an impact on the garlic consumption volume. Overseas market demand subsequently declines. European market demand in particular is expected to drop. However, the impact on the Chinese domestic market is minimal. In the end, the position of Chinese garlic in the domestic market is nearly unassailable. The production volume and the cold storage volume are both huge, and factories process garlic for the export market all year long. Other garlic producing countries are often limited by geography and weather, such as Egypt, France, and Spain, or their supply season is limited, such as Argentine.
Jining Fangda Import and Export was established in 2006. The company mainly manages garlic export services, including purchasing, selection, processing, and cold storage. The company owns processing factories and cold storage facilities in Mamiao Town in Jinxiang County, Jinan City.
For more information:
Henry Zhang - CEO
Jining Fangda Import and Export Co., Ltd.
Tel.: +86 136 0537 7818
WhatsApp: +86 136 0537 7818
WeChat ID: fangdafood