The Chinese garlic market has been stable since December. Price fluctuations are small. Although the price of shipping is coming down, that development is quite slow and the price remains high compared to last year. Manager Wang Junjie, spokesperson for Jining Shang Zhuo Food Co., Ltd., recently talked about current conditions in the garlic and onion export markets.
According to manager Wang, the overall surface area devoted to garlic plantation in Hebei and Cangshan in Shandong expanded in comparison with last year, but the production volumes in Henan, and Laiwu and Jinxiang in Shandong declined. Based on the current volume of seedlings in production areas, the production volume this year will be smaller than last year. The overall production volume could decline by as much as 5%.
"This year's first garlic harvest from Yunnan has already entered the Chinese market. The delivery volume is growing every day. Production areas in Shandong suffered from cold weather in the last month. The seedlings in many production areas suffered frostbite. If the cold weather maintains, then the production volume will decline, and that means the price will go up. At the moment the market is still unclear, and garlic traders are not sure whether they should be reluctant in selling garlic because the price may go up. Garlic from Shandong will enter the market in large volumes around the 10th of June."
"As for export, the recent issues with a shortage of shipping containers have been solved, but the price of shipping is still high. In addition, overseas markets have slowed down because of the ongoing Covid-19 pandemic. Overseas market demand is not at the same level as last year. We currently export white garlic (#5.5, 10 kg bag) to Rotterdam. The Indonesian import quota have not yet been determined. How Chinese garlic export will proceed in the coming months depends for a large part on the Indonesian import quota."
In addition to garlic, Jining Shang Zhuo Food also exports onions. "East Asian market demand for onions has grown stronger in the last few months. Demand exceeds supply, and so the price goes up. The price of yellow onions is roughly 35% higher than around the same time last year. The high price puts pressure on the export market," said manager Wang.
Jining Shang Zhuo Food is specialized in garlic, ginger, and onion export. The company ships around 2,000 containers per year.
For more information:
Wang Junjie - Manager
Jining Shang Zhuo Food Co., Ltd.
WhatsApp: +8613213293300
WhatsApp: +8619954240999
E-mail: wangjunjie@shangzhuofood.com