Pricing on garlic coming into North America is mixed right now due to a few factors impacting the category.
To start, Argentinian garlic is coming in right now and South America garlic is very cheap," says Clara Shih of Best Buy Produce International. She notes that's because garlic in Argentina, which is harvested from January to May, is generally destined for Brazil.
© Best Buy Produce
"However, Brazil has reduced its anti-dumping taxes for Chinese garlic. Because of that, there's a big disruption to the market because Brazil has got too much Chinese garlic going in and Argentina is pushing its garlic to Mexico and the U.S.," she says.
Meanwhile, early Mexican purple garlic will start production soon. "Though right now, there is a lot of illegal garlic coming in too because the prices are very low. People like us who bring it in legally from China and we pay the U.S. import tariffs, plus additional anti-dumping tariffs–it's very expensive," Shih says, noting that some shippers are buying garlic from China and bringing it to Vietnam, Pakistan or countries in South America such as Uruguay and Chile to ship illegally. "After we pay all the duties, we need to sell Chinese garlic for $55-$60. Those bringing it in illegally are selling it for under $50."
Other garlic pricing
Factor in as well that California garlic is pricing around $70/case while Argentinian garlic is between $40-$50.
© Best Buy Produce
In turn, markets are mixed up. "People are bringing in 20-30 loads and it destroys the market and we have to report them. That takes months months though, especially after the shutdown, and the damage is done," she says, noting that in turn, buyers are largely being more cautious with buying generally and are only purchasing what they can sell in a week.
On top of that, demand has been softer, thanks in part to the cold temperatures on the East Coast for the last three weeks, keeping shoppers indoors rather than at stores. "Demand is getting a bit better–Valentine's Day week was busy for example," Shih adds.
For more information:
Clara Shih
Best Buy Produce
Tel: +1 (323) 262-8888
www.bestbuyproduce.com
