The market conditions of Chinese garlic are very difficult to predict this year. Under regular conditions, this time of year the price of garlic shows a significant decline. however, the current price is still quite high.
Mr. Liu of Junan County Greenfood Co., Ltd. recently shared his views on current conditions in the Chinese garlic market: "The export price is quite stable this month. There were some smaller fluctuations, but their impact was limited. Still, the overall export price is around 1,300-1,400 USD per ton of #5.5 grade garlic. This price is much higher than around this time last year. The main reason for this development is the outbreak of COVID-19 shortly after Chinese Spring Festival [25 January, 2020]."
"There is still a large volume of garlic from the 2018-2019 production season in storage. There is around 500 thousand tons of garlic in refrigerated warehouses. The price normally begins to fall sometime in February, March, or April. This is in anticipation of the arrival of new garlic, which enters the market in May.
"However, these changes have not yet occurred this year. The previous production season of Yunnan garlic already came to an end in February and the new production season does not yet have an impact on the market. The overall production volume in Yunnan was relatively small because the weather was too warm. However, the new harvests from other production areas will enter the market in large volumes in May. This will have a significant impact on the market price. Farmers are expected to welcome an abundant harvest this year."
Farmers started planting garlic for the 2019-2020 production season back in September 2019. "The farmers expanded the overall surface area devoted to garlic plantation by 20%. The production volume is therefore much larger than before. In addition, the weather conditions are quite suitable this year. This will further enlarge the overall production volume. We expect the market price to drop when the new harvest enters the market at the end of May. The large trade volume of fresh garlic will pull down the overall market price. Furthermore, the garlic in storage, from the previous production season, will lose much of its value and the price will drop below the price of fresh garlic."
"Looking at the overall market, demand for our garlic products is more or less the same as last year. However, we notice that a growing number of countries are looking for garlic because research shows that garlic is beneficial for the immune system. However, we have not yet seen this development impact our sales. Our sales volume is no different from last year. This is still quite surprising. During the outbreak of COVID-19, we worked hard to restore our operations. We had to close down our factories for a brief period. Afterwards, we resumed business so we could continue to deliver our products across the globe. At the moment, we are mainly supplying garlic and ginger to eastern Europe, north Africa, and islands in the Caribbean Sea. We hope to deliver our top-quality products to even more overseas markets in the near future."
For more information:
Breeze
Junan County Greenfood Co., Ltd.
Junan Xiangsheng Import and Export Co., Ltd.
Address: Laopo town, Junan county, Shandong province, China
Tel.: +86-15666337366
Fax: +86-0633-8613298
E-mail: [email protected]
E-mail: [email protected]
Skype: olina02
WhatsApp: +8615666337366
WeChat ID: +8615666337366
Website: www.garlic86.com