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Argentina has become Spain's main supplier

Spanish garlic faces increasing international competition

Julio Bacete, president of the Spanish National Garlic Council, acknowledges that the sector is in crisis. Garlic has lost profitability in some Spanish regions. In addition, labor shortages and restrictions on water and optimal phytosanitary products are making the situation even more difficult. "We are in a period of adjustment after years of high prices," stated Luis Fernando Rubio, director of ANPCA, the Spanish Association of Garlic Producers and Marketers. Over the past two years, the area has decreased by almost a third.

In terms of varieties, last season 55% to 60% of the area was planted with early or spring garlic, and less than 40% with purple garlic. This led to a higher overall yield. In 2023, Spain produced 210,591 tons on 24,889 hectares. In 2024, the area decreased to 22,969 hectares, but the yield increased by 12% to 236,258 tons, according to data from the Spanish Ministry of Agriculture. Despite this growth, the global garlic market remains dominated by China, which holds the reins with a harvest of more than 12 million tons.

European garlic imports have increased both in quantity and price. Most imports come from China (with a 0.5 euros per kilo price increase), Egypt (+0.7 euros per kilo), and Argentina (with a 0.2 euros per kilo decrease in prices), according to data from the Garlic Table based on Eurostat figures. Meanwhile, Spanish imports up to July 2024 increased by 3,000 tons over the same period in 2023. The average price of its imports increased by 0.1 euros per kilo. Argentina is now Spain's main supplier with 5,752 tons of garlic at 1.80 euros per kilo, followed by China with 1,709 tons at 1.90 euros per kilo.

Cooperation between Spain and Argentina, made possible by the opposing seasons, has been successful for many years. But Argentina has expanded its acreage considerably and has become a strong competitor in the international market, especially in Europe. Currently, thanks to the GATT agreements, Argentina can export around 20,000 tons of garlic to Europe annually without import duties. If the Mercosur agreement is approved, this sum will increase by 15,000 tons per year. "This means that between 35,000 and 36,000 tons of Argentine garlic would enter Europe annually without restrictions, which would strengthen Argentina's position on the continent," Rubio stated. Hopefully, Bacete stated, Brazil will buy more and more Spanish produce.

Source: elpais.com

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