The new garlic season has begun. The first exported garlic will be shipped to overseas markets in June. Production areas are still in the middle of harvesting the garlic. The product quality is higher than last year. And the percentage of 5.5cm and 6cm garlic is rather high. Mr. Wang, the sales manager of Jining Shangzhuo Food Co., Ltd., recently talked about current conditions in the garlic export market.
Mr. Wang first talked about conditions in production areas. "Shandong farmers are currently finishing the garlic harvest, and they have started to air-dry the garlic. The weather has been dry, which helped drying the garlic. The garlic bulbs are quite big this season, about 60%-70% of the garlic is 5.5cm, 6cm, or even bigger."
The garlic harvest in Shandong is expected to finish in about 10 days. The first shipping containers will be exported to overseas markets in early June.
"We enjoyed an abundant harvest this year. There is also still about 1 million ton of garlic from last season left in reserve. That is why the export price of garlic is expected to drop below last year's price level. The FOB price for current orders is around 950 USD, but the actual price will depend on the packaging method that clients require. Different packaging methods have different cost prices," said Mr. Wang.
When asked about his expectations for trends in the export market, Mr. Wang replied, "the shipping fee has shown a downward trend since March. The current cost of shipping between Qingdao and Europe is around 8,500 USD per container. Although the shipping fee is expected to drop even further, the pandemic and the crisis in Ukraine are not over yet, and they may still affect the garlic market. Moreover, the competition in the international garlic market is rather fierce this year."
In addition to garlic, Jining Shangzhuo Food also exports ginger, onions, apples, and pears.
For more information:
Mr. Wang - Sales manager
Jining Shangzhuo Food Co., Ltd.