The strict approach to Covid-19 outbreaks in China creates several challenges for the Chinese garlic industry, including a shortage of labor and obstacles for overland transport. As a result, the export price continuously rises.
Annie, a retail manager at Jining Fenduni Foodstuff Co., Ltd., recently talked about the current conditions in the Chinese garlic market and her predictions for future developments.
"Overseas markets have stabilized since February, so our supply volume has not diminished," said Annie. "Moreover, since March the price of sea freight has gone down. This means that overseas clients can save on the cost price of imported garlic. That is why the order volumes from overseas clients have recently increased. However, the prices of shipping containers have gone up since the beginning of April, and there is not much room for the price of refrigerated containers to decline."
"The domestic market has always been the most important market for the Chinese garlic industry. Domestic sales are quite stable. There are currently no significant fluctuations."
"Although sales conditions are regular, production areas struggle with significant challenges. The coming weeks will be very busy in production areas, but regulations implemented to limit the spread of Covid-19 have caused a shortage of labor. The price of labor is expected to continue to rise as long as the shortage continues. In addition, regional measures create obstacles for overland transport. This slows distribution down and adds transport fees."
The new garlic season begins in May. "The garlic seems to grow well and we expect an abundant harvest this season," said Annie. "The weather was relatively cool this year, so the harvest will likely start somewhat later than usual. We expect some clients to purchase old garlic from storage while they wait for fresh garlic to enter the market."
For more information:
Annie
Jining Fenduni Foodstuff Co., Ltd.
WhatsApp: 0086-18678710377
E-mail: annie@china-garlic.com
Website: www.china-garlic.com