Fresh garlic from production areas in Henan entered the Chinese market relatively early this year in April. The early-season garlic shoots from Jinxiang also entered the market. The garlic season is about to kick off.
According to Mr. Lee of Pioneer Garlic Group: "The arrival of fresh garlic on the domestic market has an impact on domestic sales conditions, but the export conditions of garlic cloves remains unaffected for now. Price changes will depend on developments later in the season. For now it looks like the production volume of early-season garlic in Henan declined in comparison with last year, but Taikong garlic from Jinxiang is also about to enter the market. The overall decline in production volume will decide the price difference between fresh garlic and old garlic from storage. The price of fresh garlic is expected to exceed the price of old garlic by 500 yuan [77.80 USD] per ton."
When it comes to garlic varieties, the market conditions of white garlic have been superior to the market conditions of purple garlic in the last two months. The price of purple garlic dropped from the height of 6,200 yuan [964.67 USD] per ton of packaged purple garlic in early February to the current price of 5,400 yuan [840.19 USD] per ton.
"Compared to last year, current market conditions are quite stable. Last year the price of packaged garlic reached a high point in late January. The price was then around 8,500 yuan [1,322.53 USD] per ton. But by May the price had dropped to a low point of 5,500 yuan [855.75 USD] per ton. The price clearly declined more than this year. Looking at the current conditions we expect the price of packaged garlic to fluctuate between 6,500-5,500 yuan [1,011.34-855.75 USD] per ton," said Mr. Lee.
Garlic processing factory
When asked about the impact of the rising shipping cost this year, Mr. Lee answered: "In the last few months the international shipping price has continued to rise, and we do not expect this trend to improve before the middle of June. The shortage of shipping containers is largely resolved, but this has not yet pushed the shipping costs down."
The Pioneer Garlic Group primarily exports garlic to Europe, Central and South America, as well as the Middle East. The company mainly exports garlic that comes from Jinxiang in Shandong, but some of their supply comes from other production areas. The export white garlic and purple garlic. The surface area devoted to white garlic plantation is small and the production volume is limited, but they are packaged in premium packaging and their flavor is mild.
The surface area devoted to purple garlic is larger and this variety is exported to a larger number of countries. Their price is lower and this variety is therefore more popular in many markets. The flavor of purple garlic is sharper than the flavor of white garlic.
Mr. Lee also commented on current market conditions, "the response of clients to garlic products largely depends on the ability of specific markets to absorb the supply volume, but it also depends on the domestic garlic price in China. Clients who have the purchase power will be attracted to garlic because this product has more potential for speculation than other products."
For more information:
Mr. Lee - Manager
Pioneer Garlic Group
Tel.: +86 537 8772 726
Mobile: +86 155 6239 7099