The season in which garlic is purchased for storage is already over. The export price of garlic rapidly shot up for a brief period in August due to various reasons. Farmers responded to this development with an eagerness to sell, but warehouse owners were more conflicted. That is why the price of garlic quickly dropped again. In a short time the price dropped from 2.5 yuan [0.39 USD] per 0.5 kg to 2.2 yuan [0.34 USD] per 0.5 kg. The price then recovered as new buyers entered the market, and in the second half of August the price stabilized.
Garlic processing factory
"Chinese garlic supply to Europe is relatively stable. The current export price is around 10%-15% higher than in the same period last year. Overseas market demand is weaker than usual, but that has no visible impact on the speed of garlic export in China.
"There are three reasons for this situation: first, overseas demand weakened during the pandemic. Second, the rising shipping cost and the shortage of shipping containers form obstacles for Chinese garlic export. Third, garlic production volumes in overseas production areas expanded this year. Brazil, Turkey, and Iran all enjoyed abundant garlic harvests. These developments weakened the Chinese position in the international garlic market to some degree." This is according to Mr. Lee of the Pioneer Garlic Group.
Pioneer Garlic Group exports Chinese garlic to many markets around the globe. The export volumes of Chinese garlic in the markets of Brazil and Turkey both declined by more than 80%. That is primarily because those markets weakened. The Pioneer Garlic Group now primarily exports garlic to Central America and Europe, with an additional small supply volume for Africa.
When asked about market prospects, Mr. Lee replied, "there are two deciding factors for market developments. First, the volume of garlic reserves in September. I personally think that the reserve volume is around 4,400,000 tons. That means the reserves are quite large, and so the market price can not easily rise. There may even be a small price drop. Second, the announcement of the overall surface area devoted to garlic plantation in October will have an important impact on the market prospects."
Garlic processing factory
Pioneer Garlic Group is located in Mamiao town in Jinxiang county, also known as 'the Chinese hometown of garlic'. Mamiao town has a long history of growing garlic. This is the only place in China where Pure White garlic grows. The product quality of Mamiao garlic is exceptional. Many exporters and processing factories are concentrated in this area and in nearby places. After years of development, the company has become a modernized garlic supplier that integrates production of agricultural by-products, purchasing, processing, and cold storage.
For more information:
Pioneer Garlic Group
Tel.: +86 537 8772 726
Mobile: +86 155 6239 7099