Since the new garlic came into the market at the end of June, the demand in overseas markets has been sluggish, coupled with the large inventory of garlic from the previous seasons, the garlic market has been running at a low level and sales have been slow. However, two weeks ago, the Chinese market gradually opened up, and the orders for garlic in overseas markets increased sharply, and the price rose. Mr. Wang is the sales manager of Jining Shangzhuo Food Co., Ltd. He shared his views on the recent domestic and export markets of garlic with FreshPlaza.
"At present, there are still about 3.5 million tons of domestic garlic in stock, and the inventory is still normal." Wang said, "Two weeks ago, China canceled many control measures. Many of our overseas customers got the news and increased their orders. They want to reserve a batch of products before the Christmas holidays and the Chinese New Year holidays. Our overall order volume is on the rise. In terms of price, the price of garlic has started to rise moderately since a week ago. At present, the FOB Qingdao price of 5.5# garlic in a 10kg carton is 950-1020 US dollars/ton, which may fluctuate depending on the packaging. This price has increased by US$30-50/ton compared with two months ago. "
According to Wang, there are two main reasons for the price increase. "First of all, it is the change of the exchange rate. Half a month ago, the exchange rate between the US dollar and the RMB was 7.2 RMB per US dollar, and now it is 6.95 RMB per US dollar (the exchange rate is fluctuating). Changes in exchange rates increase the cost of importers to a certain extent. Secondly, as the pandemic measures lifted up in China, many customers wanted to place orders before the holidays, resulting in a short-term increase in demand. The price has been changing every day in recent days, with obvious fluctuations. The Chinese New Year holiday in China is around 15 days, and the earliest delivery time after the holiday is around February 10, 2023."
Other than garlic, onions and ginger are also the main export products of Jining Shangzhuo Food Co., Ltd.