In the past two months, due to a combination of factors such as repeated lockdowns and frequent exchange rate fluctuations, the price of exported garlic has continued to drop. Recently, the garlic market picked up significantly, and the overall export price has begun to rebound sharply. Regarding the current export situation, Mr. Lee from Pioneer Garlic Group shared his views with Freshplaza.
"Among the many factors contributing to the recovery of the market, logistics is one of the key factors. In the past few months, the shortage of containers has largely eased, and ocean freight rates have continued to decline, although they are still much higher than the level of pre-pandemic. According to my prediction, the downward trend of freight rates will remain for a period of time. In addition, as in previous years, the approach of Christmas will bring peak sales for garlic exports. At this stage, stocking up for Christmas is in progress and there is good demand from overseas," said Mr. Lee.
Recently, the price of garlic has risen, resulting in a decrease in export orders to a certain extent. Judging from the situation so far this year, the total export volume of garlic is still more than last year due to the low overall price.
When talking about the main challenges they face, Mr. Lee said, "We currently mainly ship goods to the Indonesian market. The main challenge for export is logistics and transportation, and the second is that the factory's processing capacity is sometimes affected by the COVID prevention and control measures.”
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