Garlic supply is meeting the market demand right now. "California and China both had good garlic crops this year and are making up for tougher than normal seasons for Mexico and Spain," says Jim Provost of I Love Produce. He does note that demand is slower as compared to a year ago. "This could be due to a softer U.S. economy, so there is more than enough supply."
© I Love ProduceSome of the I Love Produce team showing off garlic products and more at the recent IFPA show in Anaheim.
In addition to these supply regions, Argentina is the next garlic supply area to come on board from the Southern Hemisphere. "Harvest is underway, and reports are that the quality and yields are better than last season. We will see new crop Argentinian garlic in our market in December," says Provost.
© I Love ProduceProvost taking a break from the IFPA show in Anaheim to dance the tango.
The challenge of tariffs
This is all leaving prices equivalent to last year. However the margins are tighter due to tariffs on import product coming into the U.S. "The biggest challenge right now is the tariffs," Provost notes. "They range from 10 to 50 percent, depending on the country of origin so this is a significant expense. Because of the tariffs, we have seen a great deal of transshipping of garlic from countries that are net importers of garlic. So this has added to the market challenges that we face."
© I Love ProduceGarlic products and more on display at IFPA.
Looking ahead, the holiday demand for garlic should pick up sales through December.
For more information:
Jim Provost
I Love Produce, LLC
Tel: (+1) 610-869-4664
[email protected]
www.iLoveProduce.com
