Contrary to some positive voices regarding the German garlic market, the situation for local growers does not seem to be improving. On the contrary, for the 31 producers of HWG Heide Wendland Gemüse GmbH & Co. KG, this could be the third year in a row in which they have to expect a drop in sales, as Torben Salz, our authorised signatory, informs us. HWG is a subsidiary of Saatbau Stoetze Raiffeisen-Warengenossenschaft eG.
Garlic producers at a crossroads
"From the beginning, we wanted to offer both fresh and dried garlic. We can still manage the cultivation financially. However, it is the cost-intensive preparation process that is causing us problems due to the increased costs in recent years, partly because of the increased minimum wage. The drop in the price of fresh garlic could lead to an upheaval in the cultivation areas in Germany. We are now at a crossroads and are not sure whether to continue or not. There were some reports circulating that sounded downright euphoric. To be honest, that doesn't seem to reflect the realities."
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n 2021, they started with the first marketable crop. "Before the pandemic, the industry almost slid into disaster, which was basically saved by the pandemic. We had far too much volume in circulation that could not be sold. However, during the pandemic, consumers started cooking more at home, which we benefited from a lot, especially in 2020, but also in 2021. In 2022, however, crises arose again with the consequences of the war." Furthermore, a large part of the harvest had to be disposed of because the colour would not have met the expectations of the food retailer.
Price structure of garlic
Salz also explained the cost structure of garlic: "In marketing, we received about 4.90 EUR/kg last year. Of this, we have to calculate 0.90 EUR for transport, 0.40 EUR for the goods reimbursement and 2.50 EUR for processing or personnel costs. For the harvest and the special storage technology, in this case we work with an ultra-low oxygen technology, the remaining costs are just paid, so that producers end up empty-handed. If we were paid just one euro more, that would help us to some extent. But now the product is offered between 11.00 and 12.00 EUR/kg in the retail trade, from which we only receive 4.90 EUR/kg." HWG's customers include wholesale markets, food retailers and discounters.
The production of dry garlic has been largely discontinued, but fresh garlic can still be marketed. "In the first year, we produced garlic that was too small. Then we changed the varieties and took on a higher risk because this variety was not particularly frost-proof. With a lot of commitment, we managed to at least minimise the processing costs when the food retailer suddenly decided to lower the price again by 0.50 EUR/kg. It is clear to us that we first have to get to 0 for the first few years. But we cannot make big losses every year. We offer a good, certified and regional product, and yet we are being outbid by imported goods from China, Spain and Egypt. In addition, previously set prices were again not met." He therefore expects serious cuts for German garlic production.
Further Information:
Torben Salz
HWG Heide Wendland Gemüse GmbH & Co. KG
Am Bahnhof 1
29597 Stoetze
Telefon: +49 (0) 5872 98689250
Telefax: +49 (0) 5872 98689239
E-Mail: [email protected]
Webseite: https://www.knobiland.de