Recent heavy snowfall has caused the price of high-quality garlic to surge by approximately US$150/ton for the past 10 consecutive days. Mr. Wang, the sales manager at Jining Shangzhuo Food Co., Ltd., discussed the current garlic market conditions and provided insights into market expectations for the upcoming weeks in an interview with FreshPlaza.
Wang began by highlighting the recent garlic price trends, stating, "Garlic prices have been steadily rising recently, with an increase of ¥1,000/ton over the past ten days. Currently, the FOB Qingdao price for garlic in a 5.5# mesh bag ranges between US$1,800-1,830/ton for bulk packaging, while pre-packaged options are priced around US$1,860-1,900/ton, significantly higher than pre-Chinese New Year prices."
"The primary factor driving this price hike is the recent adverse weather conditions. After experiencing temperatures exceeding 20 degrees in the production regions, cold air and snowfall have suddenly descended, potentially reducing the yield of the new season's garlic. However, it's important to note that speculation and sensationalism often accompany predictions about the new season's harvest, which can artificially inflate garlic prices. The actual impact on harvest remains to be seen," Wang explained. "Furthermore, I believe the freezing rain and heavy snow in major garlic-producing areas have contributed to the price surge, along with prices hitting their peak and stabilizing thereafter."
Regarding overseas demand, Wang noted that current orders primarily consist of firm, pre-existing orders, showing little change from before. Some buyers placed orders before the Chinese New Year and have continued to do so afterward.
Wang also discussed recent trends in shipping freight, noting a recent downward trajectory. However, despite this decrease, freight costs from Qingdao to European major ports still hover around US$5,000/container, well above normal levels. Consequently, some markets have begun expanding their planting areas domestically, impacting China's garlic import demand due to high shipping costs.
Apart from garlic, Jining Shangzhuo Food Co., Ltd. also exports ginger, onions, apples, and pears as its main products.
