July and August are typically peak months for Chinese garlic exports, but this year is different. "The current garlic export market is performing weakly, with fewer orders than in previous years," Wendy Qin from Shandong Xiangsheng Import and Export Co., Ltd. said.
"The quality of the new garlic crop this year is excellent in terms of colour, purity, and dryness, but the yield of large-sized garlic is lower. Garlic prices dropped significantly in the first two weeks, and shipping costs have been decreasing since mid-July, although they remain higher than in previous years. Despite this, orders are still low, likely due to market saturation."
"Earlier this year, high garlic prices in February and March led to a decrease in orders, causing a shortage in the conventional off-season of April and May, followed by a sharp increase in customer demand. Many customers are still processing the garlic they purchased during that period, reducing their recent purchases."
"Additionally, high shipping costs and unstable shipping schedules this year have delayed garlic arrivals at ports, hindering market digestion. This is particularly evident on the Eastern European route, where a batch shipped in early May did not arrive until the end of July." Wendy explained.
Regarding current market demand, Wendy mentioned that Central and South America are relatively stable, while West and North Africa have fewer orders due to high shipping costs. "The past two months should have been peak season with dense orders, but the current export volume has dropped by at least 30% compared to previous years. It is uncertain how long this situation will last."
Although garlic prices fell recently, they have now stabilized and are showing an upward trend. "As the new garlic begins to be stored in warehouses, the price of unstored garlic will rise as supply decreases."
Shandong Xiangsheng Import and Export Co., Ltd. primarily exports garlic from Jinxiang, Shandong, and other production areas to markets in Central and South America, Eastern Europe, West Africa, North Africa, the United States, and Canada.
For more information:
Wendy Qin
Company: Shandong Xiangsheng Import and Export Co.
Tel：+86 15666337366
Email: [email protected]
Skype: [email protected]