Recently, the planting area of new garlic has decreased, and the expected reduction in production has become a hot topic in the industry, which indirectly leads to the garlic price hitting new highs, and the price changes almost every day. In this regard, Spring Zhai, the sales manager of Jining New Silk Road Food Co., Ltd., spoke with FreshPlaza.
According to Zhai, the price of garlic is rising every day, and the price changes almost every day. "Price fluctuations are mainly caused by the following reasons. First, the yield is expected to decrease. Topics such as the heavy snow climate causing garlic seedlings to be covered by heavy snow and the prediction of the new season's yield reduction have once again become catalysts for the market, which has further stimulated the industry's expectation of yield reduction, and the market is bullish."
"The second reason is the expected reduction of the garlic area. Influenced by factors such as the poor gains from planting garlic, the high cost of labor and agricultural materials, the enthusiasm of garlic farmers in the main producing areas was suppressed, and the garlic area harvested in summer in 2023 decreased. The discussion on the reduction of garlic planting areas in the new season on other platforms since March has made the topic trendy in the industry."
"In addition, the booming market demand is also one of the reasons for price fluctuations. Stimulated by the continuous good news in the industry, the enthusiasm for capital to enter the market was once again ignited. After the liberalization of the pandemic, the domestic catering industry was booming, and the demand for garlic increased significantly, which indirectly led to an increase in garlic prices. "
Jining New Silk Road Food Co., Ltd. is located in East Jining, and the garlic factory is located in Jinxiang, the hometown of garlic. Besides garlic, apples are also its main export products. Its apple factory is located in Penglai, Shandong Province, and it is exported to Penglai Fuji all year round.
"Three weeks ago, the inventory of small apples in the market decreased and the supply was insufficient, which led to a sharp increase in prices. Small ones are mainly supplied to Indonesia, Nepal, Bangladesh and other Southeast Asian regions. We have plenty of big fruits in stock. The price of big fruit has a unique advantage, mainly in Southeast Asia, the Middle East, Europe, Australia and other markets."