The retail price of garlic continues to rise and is now 18% higher than this time last year at 23.88 yuan per kilo; a ten year high. How come?
Well, firstly, the impact of the weather. Unusually low temperatures, worldwide, affected garlic crops and unbalanced the market. Secondly, in recent years, the cost of cold storage has been increasing along with rental costs. Thirdly, the garlic cycle that occurs every 3 years. The price of garlic was at a lower position before 2013, according to data from the past 10 years, yet prices have been constantly rising in the past 4 years. Finally, the state implemented severe punishments on trucks that were over-loaded or travelling above the speed limits which led to an increase in logistics costs.
