Chinese cold room garlic export price shows strong recovery
Fresh garlic entered the market at the end of May of this year and the season lasted until early September. The price has recently shown a gradual increase. The cold storage season for garlic began in mid-September. The price started out stable, but then started to drop. The average price fell from 0.30 to 0.40 yuan [0.04-0.06 USD] per 0.5 kg before October 10. Last week, however, the price of garlic showed a strong rally. Traders in the garlic market are now reluctant to sell as they hope the price will rise even more.
CEO Henry Zhang visits garlic processing plant
Garlic processing plant
“Our company exports garlic to a wide variety of overseas markets, including South Asia, Southeast Asia, the Middle East and Africa. The overall export volume has increased compared to same period last year. The volume of garlic still stored is currently about 50% smaller than last year, but the export price is also 50% lower. For example, red garlic (5cm) from cold store sold for 2.1-2.2 yuan [0.32-0.33 USD] per 0.5 kg on October 17. The average price on this date over the past 19 years was 3.7-3.8 yuan. [0.56-0.57 USD] per 0.5 kg. ”According to Henry Zhang, CEO of Jining Fangda Import and Export Co., Ltd.
The garlic planting season begins around the Mid-Autumn Festival every year [October 1, 2020]. The planting season is already over. Data from Jinxiang production areas show that the overall area devoted to garlic planting has decreased by 10% this year. This is why the price of garlic kept in the cold has increased in recent weeks. Traders are eager to store garlic and reluctant to sell too early.
“The export market is vulnerable to price fluctuations. Exporters will see their order volume decrease as the price increases. Ultimately, the Garlic Export Market 2020/2021 is shaped by many different factors and there will be many challenges. The Chinese garlic market is quite organized. Both market absorption volume and consumption volume are stable. When exports decline, the domestic market takes a slightly larger share of the garlic supply volume, ”explained Director Zhang.
Garlic processing volume
The Covid-19 pandemic is still affecting many markets around the world. Many countries are currently experiencing a second wave. The restaurants are once again temporarily closed. This has an impact on the volume of garlic consumption. The demand from the overseas market decreases thereafter. Demand from the European market in particular is expected to decline. However, the impact on the Chinese domestic market is minimal. In the end, the position of Chinese garlic on the domestic market is almost unassailable. Both the production volume and the cold storage volume are huge, and factories process garlic for the export market throughout the year. Other garlic-producing countries are often limited by geography and weather, such as Egypt, France, and Spain, or their supply season is limited, such as Argentina.
Jining Fangda Import and Export was established in 2006. The company mainly manages garlic export services, including purchasing, selection, processing and cold storage. The company has processing factories and cold stores in Mamiao Town, Jinxiang County, Jinan City.
For more information:
Henry Zhang – CEO
Jining Fangda Import and Export Co., Ltd.
Phone. : +86 136 0537 7818
WhatsApp: +86 136 0537 7818
WeChat ID: fangdafood
Email: [email protected]