In the last few years, garlic has turned into an investment product. The amount of speculation in the garlic market is growing and this season, since the new harvest entered the garlic market, price fluctuations have been small. The balance between supply and demand in the domestic market has been stable. The profit margin is currently very small for traders with stock in storage. The market price of garlic is only marginally higher than the cost price of storage.
The Jining Green Stream Fruit and Vegetables Co., Ltd. is a specialized fruit and vegetable trading company in Shandong, which exports a wide variety of fruit and vegetable products. According to spokesperson Mr. Zhang: "The Chinese garlic harvest was abundant this year, the garlic is rather large and the product quality is quite good. About 20% of the garlic measures 4.5-5.0cm, and roughly 30% of the garlic measures 5.5cm. The remaining 50% is around 6.0cm."
As for exports, the overall volume of Chinese garlic export declined by 20%-30% in comparison with last year. "The export volume of our company declined by more than 30%. The shipping cost is too high and overseas market demand is smaller due to the pandemic. Those are the main reasons for a decline in Chinese garlic export," explained Mr. Zhang. "The FOB price of packaged 5.0# garlic is around 1,000-1,100 yuan [156-171 USD] per ton."
"Southeast Asia is still the largest export market for Chinese garlic. More than 60% of Chinese garlic exports end up in Southeast Asia. The market that shrunk the most this year was Brazil. Chinese garlic export to Brazil declined by more than 90% and the shipping costs for this route have almost doubled. Brazilian importers purchased their garlic in Argentine and Spain instead."
When asked about market prospects in the coming weeks, Mr. Zhang replied, "I expect the price to slightly come down, but not too much. Current market demand is not that strong, and suppliers do not want to lose too much. So there is not much room for the price to drop."
For more information:
Mr. Zhang Shuhan
Jining Green Stream Fruits & Vegetables Co., Ltd.