Chinese garlic export price fell in early August, but is now stable
New cases of Covid-19 in many production areas caused panic in the Chinese garlic market in early August. Some traders and farmers feared stricter policies would halt trade, and traders with storage, wholesalers and processing plants have all withdrawn from production areas. The supply volume increased, but the number of customers suddenly fell, and therefore the price fell.
“This month the price fell due to a panic in the Chinese garlic market. Apart from garlic in storage, there is only a small volume of garlic and the quality of its product is declining. Garlic that is not stored can only be sold for about 2-3 weeks. However, market demand declined rapidly at the start of the month. Yet there is still some degree of market demand. This is why the price of garlic has already started to stabilize. The price drop is likely to turn in the coming weeks. ”That’s according to Ms. Annie Chen, sales manager at Jining Fenduni Foodstuff Co., Ltd.
Many different factors played a role in lowering prices. First of all, the garlic started to sprout early due to flooding, typhoons, and high temperatures. This makes the garlic more difficult to store and the farmers more willing to sell their stock. Second, garlic went into storage about 7-10 days later than in previous years. Garlic storage period is now coming to an end and traders with storage are buying less garlic than before. Third, rising shipping costs and a shortage of shipping containers have reduced foreign demand for Chinese garlic.
Ms. Annie Chen added, “The floods and typhoons in Henan did not have a direct impact on garlic production areas in Jinxiang, the hometown of Chinese garlic, but some traders from Henan have come. in Jinxiang to buy and store their garlic there, which pushed the price of garlic in Jinxiang increased. Nonetheless, I believe that the impact of the floods will have little impact on the Chinese garlic market as a whole.
At present, Jining Fenduni Foodstuff mainly exports garlic to Africa, Middle East and Eastern Europe. According to Ms. Annie Chen, “Traders with garlic in stock will start supplying the market from mid-September. The overall export price of Chinese garlic is still higher than last year. But the pandemic is still serious in Africa and the South. America. In addition, shipping costs continue to increase. This will certainly have an impact on Chinese garlic exports. However, we are not too worried. There is still a foreign demand for Chinese garlic. And we have worked hard for many years to build a loyal following. “
For more information:
Ms. Annie Chen – Sales Director
Jining Fenduni Foodstuff Co., Ltd.
WhatsApp: + 86 18678710377
WeChat: + 86 18678710377
Viber: + 86 18678710377
Email: [email protected]