The price of garlic usually rises just before the Chinese Spring Festival [1 February, 2022]. This year, however, the production volume was huge and the there is still nearly 3 million tons of garlic in storage. The supply volume is larger than ever, and so the price dropped. The price has been relatively low for quite some time.
Mr. Zhang, Sales Manager at Jining Greenstream Co., Ltd., recently talked about current conditions in the garlic market. "The current FOB price of garlic is 900-1,000 USD per ton. But the shipping fees remain high and show no sign of coming down. They significantly add to the cost price for clients. Moreover, the pandemic still affects overseas market demand. The Chinese garlic export volume in 2021 declined by 20%-30% compared to the year before," said Mr. Zhang.
"The volume in storage has never been this large, roughly 3 million tons. The imbalance between supply and demand is one of the reasons why the price has been this low."
"Some European importers switch to Spanish garlic instead, to reduce the cost price of transport. This development has an impact on Chinese garlic export. Not only is the market for Chinese garlic shrinking in the European Union, but the same is true for Central and South America. Only market demand from Eastern Europe remains stable."
"We usually select overland transport for garlic export to Russia. Even though the cost of overland transport from China to Russia is now almost the same as the cost of sea freight, overland transport is much quicker. The journey from China to Russia takes about 10 days, and there are fewer delays compared to sea freight. That allows us to better control the market."
The border port at Manzhouli in Inner Mongolia was closed between the 3rd of December and the 14th of January, due to an outbreak of Covid-19. "Manzhouli is the largest border port between China and Russia. The temporary closure caused significant complications for importers and exporters. We had no choice but to use sea freight for our products during this period."
When asked about market predictions for the coming weeks, Mr. Zhang replied, "I think that the price of garlic will remain stable in the short term, but may fall again after Chinese Spring Festival."
In addition to garlic, Jining Greenstream Fruits & Vegetables Co., Ltd., also exports pomelo, and lemons.
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Mr. Zhang Shuhan
Jining Greenstream Fruits & Vegetables Co., Ltd.