The new season of garlic has started, but due to the reduced production, the price in the production area is currently rising, and the overseas customers are not active, while some exporters are offering low prices to develop new customers. Mr. Wang, the sales manager of Jining Shangzhuo Food Co., Ltd, spoke about the recent garlic market and market expectations for the next few weeks with FreshPlaza.
Wang first introduced the production area. "The new garlic was harvested in mid-May. The output was 10%-15% lower than that of the same period last year. The reason for this is firstly that the planting area in Shandong has decreased. Secondly, some early-ripening garlic were affected by yellow leaves, and the specifications of the garlic were affected to a certain extent. In terms of quality, the overall size of the new garlic this season is relatively small, with 4.5-5.0-size garlic accounting for 55%-60%, but the quality of the new garlic is not bad."
According to Wang, there is still a lot of old garlic in stock. But these are no longer suitable for export and can only be processed as dehydrated garlic slices.
"In terms of the market, in addition to price increases due to production cuts, the market price has been further raised due to the participation of some speculators. The current market price continues to be bullish. Prices at origin are not expected to drop any time soon. "
"In terms of export, the current export quotations are quite chaotic. Due to the small number of overseas orders, some exporters have maliciously quoted low prices to open up new customers." Wang said, "The current price of 5.5-size garlic FOB Rotterdam is 1750 -1850 US dollars/ton. The price has increased by about 400 US dollars/ton compared with 45 days ago.”
In addition to garlic, ginger, onion, apple, and pear are also the main export products of Jining Shangzhuo Food Co., Ltd.