The price of Chinese garlic did not change much during the National Day [1 October] period. More recently, however, production areas suffered from excessive rainfall, the busiest period of the agricultural season lasted longer than usual, farmers rushed to harvest and rushed to plant, and processing factories suffered a shortage of workers. That is why the cost price of labor did not come down after the National Day as experts had predicted. At the same time, international shipping schedules are difficult to determine and ships are frequently delayed. That is why Chinese garlic export has not been as smooth as expected.
"Our company primarily exports garlic to Indonesia, Pakistan, Saudi Arabia, Brazil, the Netherlands, and Russia. The export price of Chinese garlic destined for the European market is higher than last year, much higher. The cost price of raw garlic alone already increased by 30%. The rising cost prices of shipping, packaging, and labor all push the export price up. But according to our predictions conditions will soon stabilize. The cost price will come down and stabilize." This is according to Mr. David Wu of Shandong Haijiang International Trade Co., Ltd.
Garlic
Mr. David Wu continued: "Garlic production areas recently suffered from excessive rainfall. These weather conditions have had an impact on the market predictions of experts in the industry. This is also one of the reasons why the price of garlic did not come down after the National Day period as expected. As for product quality, the weather conditions have had no impact on the product quality of garlic. The garlic harvest of this season is already stored in warehouses. However, the planting period is slightly delayed, so that some of the garlic seedlings have missed the ideal planting time. That may have an effect on the production volume and product quality next year. The weather conditions do affect speculation on the garlic market. However, actual market prices still depend on the overall surface area devoted to garlic plantation and other trends in the garlic industry."
Garlic
When asked about the slow pace of garlic deliveries, Mr. David Wu explained that intense competition in the international market is to blame. A number of other countries have begun to plant garlic in the last few years, and that has an impact on the Chinese garlic industry. The effect is most obvious in the European and North American markets. Demand for Chinese garlic remains strong in South Asia and the Middle East, but the markets in Europe and North America are quiet. However, the ongoing pandemic affects the economies of countries around the globe and purchasing power has significantly declined. In addition, the cost price of shipping continues to rise, the cost price of raw material went up as well, and currency exchange rates are unstable. These conditions affect everyone and so importers lack the resources to purchase garlic, or they buy much smaller volumes than before.
For more information:
Mr. David Wu
Shandong Haijiang International Trade Co., Ltd.
Website: http://www.haijiangfruit.com
Tel.: +86 537 2716878
Mobile: +86 15898785310
Fax: +86 537 2365058
E-mail: sale6@haijiangfruit.com