The garlic market had been in depression for a while, but after the New Year, the market conditions in China and abroad began to improve. Annie is the sales manager of Jining Fenduni Foodstuff Co., Ltd., and she recently talked about current conditions in the garlic market.
Garlic has been an investment product for several years now. Speculation is one of the most important factors in the garlic market. The price fluctuations have been sizable since the start of this season. "The price of fresh garlic from the 2021 harvest is already at a low point, but there is still room for the price to drop even further. The price has been stable at a low point for several weeks, but market demand is slowly growing stronger," said Annie. "However, the volume in storage is sizeable, so traders with stock in storage do not have a lot of room to raise the price and make a profit."
Annie also talked about conditions in the retail market. "Domestic sales have improved now that Chinese Spring Festival [1 February, 2022] is near. Garlic is a flavoring agent that Chinese households can not do without. We expect domestic demand to soar in January and February. The price of larger garlic, especially 6.0cm and bigger, shows a steady rise."
Jining Fenduni Foodstuff primarily exports garlic to Africa, the Middle East, and Europe. "The price of garlic is very low, which means that the risk for clients is smaller than usual. That stimulates the order volume from overseas markets. The demand from overseas markets increased after New Year. Many new clients have put in new orders, so conditions in the export market are improving. The current FOB price of garlic is around 9,00-1,000 USD per ton."
"Southeast Asia is still the largest market for Chinese garlic. Southeast Asia accounts for more than 60% of the overseas market demand for Chinese garlic. The export market that shrunk the quickest this year was Brazil. Chinese garlic export to Brazil declined by more than 90% compared to previous years. Not only did the shipping cost nearly double, but Brazil also expanded their garlic import from Argentine and Spain. That was a blow for the Chinese garlic export to Brazil."
"Cargo space is still difficult to obtain. And the shipping fees are not coming down either. That is why we advise clients who place new orders to book cargo space in advance."
When asked about the response of Fenduni Foodstuff to the biggest challenges in the industry at the moment, Annie replied, "we have been exporting garlic for many years. We have certain sales channels with guaranteed demand. And our clients have quite a large market share. So even the pandemic has had only a limited impact on our business."
For more information:
Annie
Jining Fenduni Foodstuff Co., Ltd.
WhatsApp: 0086-18678710377
E-mail: [email protected]
Website: www.china-garlic.com