"Overseas market demand for Chinese garlic is growing, so we expect the price to rise"

The price of Chinese garlic has been fluctuating since it entered the market at the start of the season. The price has been rather low. After some of the anti-Covid measures were relaxed, overseas market demand recovered to some extent. Annie is the Sales Manager at Jining Fenduni Foodstuff Co., Ltd., and she recently talked about current conditions in the Chinese garlic market.

"The price of Chinese garlic went up before Chinese Spring Festival [1 February, 2022]. However, the price has only shown a downward trend since then. The current price of Chinese garlic is lower than the lowest price in 2021. However, the price is not expected to drop much more. The current FOB price of 50mm garlic is around 800-900 USD," said Annie. "But we expect the price to pick up in the next few weeks."

As for export, Jining Fenduni Foodstuff primarily exports to Africa, the Middle East, and Europe. "Many overseas markets are loosening their pandemic restrictions and so overseas market demand is slowly growing stronger. We can see the volume of inquiries and orders grow," said Annie. "As Ramadan is approaching, the order volume from Africa is growing. Market demand is growing stronger."

"In the end, Southeast Asia is still the largest export market for Chinese garlic. That market accounts for more than 60% of China's garlic export volume. The export market in Brazil is shrinking fast this season. The Chinese garlic export volume to Brazil declined by more than 90%. That is not just because the shipping fees doubled, but also because Brazil increased their import volumes of garlic from Argentine and Spain. That had a real impact on Chinese garlic export."

The shipping fee has been rather stable since February. Fluctuations have been minimal. However, for some ports the shipping fee is still rising. "Currently, the shipping fee from Qingdao to Europe is 12,500 USD per container. The product value of garlic is not that high, so the shipping cost is about 50% of the product value. Some customers have concerns and they prefer to reduce their order volumes."

The new garlic season will start in May. "It is too early to estimate the product quality of the next harvest. Weather conditions in the next few weeks will have an important impact."

For more information:


Jining Fenduni Foodstuff Co., Ltd.

WhatsApp: 0086-18678710377 

E-mail: annie@china-garlic.com 

Website: www.china-garlic.com 

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