The export price of garlic was low when the season started. That is why suppliers were reluctant to sell. However, as more and more traders are stocking their warehouses with garlic, the price is slowly going up. And there is always the risk that speculation will push the price up even further. Mr. Wang, the sales manager of Jining Shangzhuo Food Co., Ltd., recently talked about conditions in the garlic market.
"The garlic reserve was huge in 2021 and the garlic production volume in 2022 was big as well. That is why the price of garlic is now lower than in previous years. Farmers are reluctant to sell when the price is low. At the same time, this is the best moment to buy garlic. A lot of the garlic is sprouting, so visiting traders prefer to buy the garlic as soon as possible and put the garlic in proper storage. Their eagerness to buy now, rather than later, temporarily stimulates the price. And the price is not likely to come down any time soon," said Mr. Wang.
"The garlic dried well this season. The size of the bulbs is big, and the weight is more than sufficient. The color is nice as well. Around 30% of the harvest is 6.0# or larger. There is enough large garlic to satisfy the demand from visiting traders," said Mr. Wang. "The current FOB price of 10kg bags of 5.5# garlic from Qingdao is 840 USD per ton. That is 100 USD more than a few weeks ago."
"The cost of shipping, however, is still high and that affects the volumes that clients import. Even though the price slightly came down, the cost of shipping between Qingdao and Europe is still around 8,500 USD per container. That is a quarter of the overall value. Some markets are expanding domestic garlic production to avoid the high cost of shipping. And that of course affects Chinese garlic export," said Mr. Wang.
In addition to garlic, Jining Shangzhuo Food also exports finger, onions, apples, and pears.
For more information:
Mr. Wang - Sales manager
Jining Shangzhuo Food Co., Ltd.