The price of Chinese garlic has been close to a new low in the last few weeks, but as the Chinese Spring Festival [1 February, 2022] approaches, overseas order volumes have begun to grow. Mr. Wang, sales manager at Jining Shangzhuo Foods Co., Ltd., recently talked about domestic garlic sales and garlic export.
"Market conditions are not great at the moment. There is no market with a huge demand volume, but overseas market demand is growing compared to a few months ago. Overseas buyers are stocking up before Chinese Spring Festival [1 February, 2022] slows down activity in the Chinese garlic industry. The overall order volume from overseas markets is growing. The price is also showing a slight rise. The current FOB price of #5.5 garlic is around 1,000 euro [1,128 USD] per ton. Of course, that price slightly differs based on packing method."
The EU and the UK are the main export markets for Jining Shanghzuo Food. "Many clients prepare before Christmas. That is when the price of garlic shows an upward trend, but the price immediately drops after Christmas. Moreover, European and British clients do not want to pay a high customs tariffs and prefer to switch to Spanish garlic instead," said manager Wang.
"As for Asia, one of the greatest export markets is Indonesia. however, Indonesia has not yet announced their garlic import quota. Most suppliers have not yet shipped their garlic for Indonesia. Moreover, the rising shipping cost also affects export to Southeast Asia."
Cargo space is still difficult to find and the shipping fees remain high. And in one month the new ginger season will begin, which makes cargo space even more scarce. In addition, Chinese Spring Festival is approaching. Some exporters prefer to send their products early and that puts more pressure on ports. Activities in Chinese ports have slowed down, and ships are often delayed. The current price of express shipping from Qingdao to Europe is around 12,500-13,000 euro [14,107-14,671 USD] per shipping container," explained manager Wang. "And we do not expect the shipping fees to come down in the next few weeks."
When asked about changes in supply and demand in the next few weeks, manager Wang replied, "domestic demand will be strong in the period leading up to Spring Festival, but supply will not grow. What the overseas market will do remains to be seen."
In addition to garlic, Jining Shangzhuo also exports onions. "This is the last phase of the onion season in Gansu, and onions from Yunnan will enter the market in early April," said manager Wang. "The current FOB price of peeled onions destined for Southeast Asia is around 510 USD per ton. That is more or less the same as the shipping cost. Overseas demand for Chinese onions has greatly declined since last year because the shipping cost almost exceeds the product value."
For more information:
Mr. Wang - Sales manager
Jining Shangzhuo Food Co., Ltd.