Currently, the overall Chinese garlic market remains sluggish, with oversupply leading to persistently low prices. Storage operators are generally under pressure to sell at a loss.
Jining Greenstream Fruits & Vegetables Co., Ltd., located in Jining City, Shandong Province, exports approximately 900 containers of garlic annually. According to Mr. Zhang, the company's export manager, current inventory levels are significantly higher than in previous years. "Last year, both garlic production and storage volumes were high, but market demand was limited, resulting in a continuous accumulation of inventory. At present, inventory levels remain elevated, with a considerable volume still unsold." Against this backdrop of oversupply, garlic prices have dropped sharply and are currently just above ¥4 per kg, lower than during the same period in previous years.
© Greenstream
In terms of quality, the new crop is generally performing well. "Overall quality is within a normal range, but weather conditions during the harvest period, especially rainfall, will have a certain impact on final product quality and delivery schedules." Currently, Yunnan production areas have already entered the harvest period, while the main northern regions are expected to begin harvesting in early May.
© Greenstream
Intensifying export competition puts pressure on margins
With consistently high production and rising inventory levels over the past two years, competition in the export market has become increasingly intense. Mr. Zhang noted that many exporters are maintaining sales by reducing profit margins, while a growing number of companies are exploring emerging markets such as Africa.
In terms of logistics, the ongoing tensions in the Red Sea and disruptions to the Suez Canal have forced some shipping routes to Europe and the Middle East to be rerouted, extending transit times and increasing costs. However, overall, this factor has had a relatively limited impact on China's garlic exports. "China's main garlic export markets are still concentrated in Southeast Asia and East Asia, while Europe and the Middle East account for a relatively smaller share," he said.
For Jining Greenstream Fruits & Vegetables Co., Ltd., Eastern Europe remains its primary export destination. "In recent years, demand in the Russian market has remained stable. Since we mainly rely on land transportation, we are less affected by fluctuations in sea freight rates."
In addition to garlic, ginger, lemons, and pomelos are also key export products for Jining Greenstream Fruits & Vegetables Co., Ltd.
For more information:
Zhang Shuhan
Jining Greenstream Fruits & Vegetables Co., Ltd
WeChat / WhatsApp: 008615853798811
[email protected]
