China is by far the world's largest producer of garlic. Thus, Düpmann Ltd & Co. purchases large volumes from this country, as well as from Spain and Italy. "The largest producer in the world has its cultivation areas mainly in the Shandong region. The harvest starts at the end of May; 10 to 15 percent less volume than last year is expected," Managing Director Heinz Düpmann informs us.
Photo: Düpmann GmbH & Co. KG
Prices increased by 50 percent
"Cultivation volumes have declined, which is probably related to the pandemic, among other things, as well as the unsatisfactory prices. Prices have already risen by some 50 percent since March. It remains to be seen whether this high level will be maintained. In June, we will have to determine the main import volumes of frozen goods. Here, too, we have to wait and see how prices develop."
The company considers the increasing requests for European goods to be very positive. "The volumes from Spain and Italy are increasing from year to year. Here, in addition to the good and intense garlic flavor, the sustainability concept also plays quite a big role. This is because cultivation in Germany has also increased. As a result of the increased demand for German and European goods, we have been working on the peeling of garlic here at the company and have invested in peeling technology. Starting with the new harvest, we can offer freshly peeled garlic from us - it doesn't get any fresher than that."
Düpmann estimates that this may also have something to do with a "non-China policy": "Many are also of the opinion that we have become too dependent on China and that we should also orient ourselves more to other countries of origin. It is true that Spanish goods are significantly more expensive than Chinese goods, but Spanish goods are quite convincing with their intense flavor."
No delays, fluid supply chains
The supply chains are all running smoothly again. Corona is also virtually no longer an issue in China. Shipments are completed without delays. In the past two years, we have sometimes paid $16,000 per container at peak times. However, the price per container should now be $3,000 to $4,000. However, the post-carriage costs, meaning the cost of handling containers from the port of Rotterdam or Hamburg, are likely to have increased." The company accepts 10-kg cartons and also sells the product by the pallet.
However, sales volumes so far this year have been lower than in previous years. "Buying behavior has simply changed. Many people seem to be consuming less away from home. Nevertheless, sales in gastro-wholesale are consistently good, even though prices have increased somewhat," Düpmann explains. "The trade in fresh and frozen garlic, as well as the production of garlic purees with various recipes, have been very important to us in the company for many years. Especially in the production of the purees we can react well to the wishes of our customers. But we are also the right place for customers who are interested in dried products. We can offer many different qualities," Düpmann concludes.
For more information:
Heinz Düpmann
Düpmann GmbH & Co. KG
Am Teuto 18
33829 Borgholzhausen
Tel.: +49 54 25 / 9 32 46 21 00
Fax: +49 54 25 / 9 32 46 21 40
E-Mail: [email protected]
Web: https://www.duepmann.de