The price of Chinese garlic soared after Chinese Spring festival [12 February, 2021]. Only in July did the price show a slight downward trend. The current price is around 0.15 yuan [0.02 USD] per 0.5 kg lower than the lowest price in June. Still, the export price is much higher than in previous years. Add to this situation the rising cost price of shipping, and it should come as no surprise that the export volume of Chinese garlic is smaller than in the same period last year.
The best representative of the Chinese garlic market is Jinxiang, also known as the Chinese hometown of garlic. The new harvest from Jinxiang began to enter the market in May. "The overall production volume of garlic in Jinxiang seems to be slightly smaller than last year, but the overall product quality is better. The first week of July has always been the time of year when garlic enters the market in large volumes, but this year was slightly different. The price of garlic is predicted to come down even further, so most traders with storage space are waiting to see how the market develops before they start purchasing fresh garlic." This is according to Mr. She Chunjiang of Sandong Jining Haiyu Trade Co., Ltd.
Mr. She further explained, "around this time last year the price of storage was around 420-450 yuan [64.74-69.36 USD] per ton, but this year the price of storage dropped to 320-350 yuan [49.33-53.95 USD] per ton. Traders expect the price to fall even further. Most of the market supply consists of fresh garlic. The price of fresh garlic is significantly higher than the price of preserved garlic. This is primarily because the product quality of preserved garlic suffers now that the temperatures are rising. Last season's garlic is gradually losing market advantage. Demand from processing factories for preserved garlic is rapidly weakening."
When asked about the export market, Mr. She said, "there are several key factors that shape the market, including distribution cost and the volume of garlic in reserve. In addition, local measures against the spread of Covid-19 should be considered. India is one of the main export markets for Chinese garlic. The garlic export from China to India expanded every year in the last few years. At the moment India accounts for about 40% of the Chinese garlic export volume. In other words, the spread of Covid-19 in India and the rest of south and southeast Asia has a direct impact on the export conditions of Chinese garlic."
For more information:
Mr. She Chunjiang
Shandong Jining Haiyu Trade Co., Ltd.
Tel.: +86 537 232 1568