Chinese garlic export in October significantly increased compared to September

Inelastic overseas demand for Chinese garlic continues to grow

The Chinese garlic export volume in October was significantly larger than in September. The Chinese garlic season was later this year than usual as a result of the double-dip La Niña weather conditions. October is one of the busiest months in the agricultural season and workers were occupied with planting activities, which left packaging factories with a shortage of workers. That is why the cost price of labor went up. Yet despite these conditions the export volume still expanded. That is an indication of growing inelastic demand from overseas markets for Chinese garlic. In October China primarily exported fresh and refrigerated garlic to Indonesia, Vietnam, and Malaysia. The garlic mainly came from production areas in Shandong, Jiangsu, and Henan.

1. Garlic export volume shows significant growth

China exported 177,877.31 tons of fresh and refrigerated garlic in October 2021. The overall export volume reached 1,497,505.74 tons so far this year. The export value reached 186,009,800 USD in October, and the overall export value reached 1,523,519,900 USD. The average export price was 1,045.72 USD per ton in October, and the accumulated average export price so far was 1,122.09 USD per ton. The export volume increased by 20.29% compared to the previous month and 15.40% compared to October in the previous year. The accumulated export volume in the first ten months of the year fell by 13.32% compared to the same period last year.

2. Indonesia stands out

The product quality of Chinese garlic exported to the Indonesian market improved this year. Garlic plantation in Southeast Asia has been growing in the last few years, but due to weather conditions and the quality of garlic varieties, Southeast Asian garlic does not compare to Chinese garlic. Moreover, Southeast Asian garlic does not look as good as Chinese garlic. That is one of the reasons why clients across the globe look to China for their garlic supply.

3. Shandong share of export is shrinking

Major garlic production areas in China are concentrated in Shandong, Jiangsu, and Henan. Shandong supplied 61.85% of the fresh and refrigerated garlic in October. That is 7.39% less than in September. Shandong and Henan both saw their market share decline, while Jiangsu grew stronger.

4. Average export price fell compared to last month, but rose compared to last year

The average export price of fresh and refrigerated garlic was 1,045.72 USD per ton in October this year. That is a slight decline of 0.57% compared to September, but an increase of 22.4% compared to the same period last year. The average export price of fresh and refrigerated garlic has been higher than last year since May this year.

Source: Mysteel online

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