Overseas market demand for garlic declined because of the increasing shipping cost and the appreciation of the Chinese yuan. The Chinese garlic market is currently stable and there are only a few small price fluctuations. Mr. Zhang of Jining Greenstream Fruit and Vegetables Co., Ltd. recently talked about the current conditions in the Chinese garlic industry.
Large-scale garlic suppliers are quite eager to sell. The price is likely to remain relatively stable in the short term. There are several reasons for this situation. First, the overall surface area devoted to garlic plantation in Jinxiang and surrounding production areas declined this year. Second, there is a small supply shortage because of increased demand during the period around Chinese Spring Festival [12 February, 2021].
Market supply and demand will return to normal in the last week of February. Even though the export volume is larger than in previous years, because the production volume last year was excessive, there is still a huge volume of garlic in Chinese warehouses at the moment. This puts a lot of pressure on the garlic price.
As for export, the rising shipping costs and the shortage of shipping containers have caused a lot of chaos in the garlic export market. The shipping cost is slowly coming down again, but only slowly, so the price remains high. Customs data shows that the current export volume is slightly larger than around this time in previous years.
"China suffered from a cold current in January and in many garlic production areas the seedlings were damaged by frost. However, the impact of the weather on the production volume seems to have been quite small in the end. The domestic garlic price fluctuates because people are speculating on the garlic market. However, the concrete conditions in the garlic market will ultimately depend on the harvest, the activity of traders with stock in storage, and the enthusiasm of traders, as well as the conditions of garlic in storage."
In addition to garlic, Jining Greestream Fruit and Vegetables Co., Ltd. also sells lemons, pomelo, and ginger. The company exports around 2,000 shipping containers per year.
For more information:
Contact person: Zhang Shuhan
Jining Greenstream Fruit and Vegetables Co., Ltd.
E-mail: info@greenstream.cn