Supplies of garlic in North America are plentiful--particularly coming from Argentina and Peru. “At the current rate of imports, the growers should be careful about becoming the new China as far as the supply of garlic goes,” says Jim Provost of I Love Produce. “I don't think that’s a good idea because the raw material in China has been under $.13 per lb. ($.29/kg) all year, with no signs of improvement.”
Right now, China has more than 2. 4 million tons of garlic in storage. “The new garlic crop is only a few months away. That is equal to about 100,000 containers so they need to move over 6,000 containers in 16 weeks, which is impossible,” says Provost. “So China will be marketing 2022 and 2023 crop years simultaneously come this June.”
Meanwhile, the Southern Hemisphere supply is dominating the market right now--namely Argentina and Peru. “It seems that any garlic left unsold from their harvest is being shipped to traders,” says Provost.
The team from I Love Produce (right, Provost) at this weekend's SEPC Southern Exposure show.
The effect of China’s production
China’s production impacts the world market, so the fact that it is oversupplied impacts other areas coming into production. “Though California is near the end of the season and there is a strong domestic demand for California product,” says Provost. “It will be less impacted by oversupply issues from China as other exporting countries will be.”
In general, Provost says the timing of garlic growing feels like it's shifting. “I’m not sure if climate change has contributed to that, but it seems like garlic has been coming on earlier than normal the last couple of years,” he says.
As for demand, it’s soft. “Companies are calling us that are not normally in the garlic business asking if we can buy garlic. Since much of this garlic was shipped too late in the season, germination will be an issue for these late shipments so "buyer beware,’” says Provost. “This kind of speculation and poor quality is putting downward pressure on prices.”
For more information:
Jim Provost
I Love Produce
Tel: +1 (610) 869-4664
jim@iloveproduce.com
www.iloveproduce.com