“Chinese garlic export price on a downward trend”

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China’s garlic market was fairly quiet in the two months leading up to the traditional Chinese Spring Festival [25 January, 2020]. The price of mixed-grade garlic remained around USD 1,050 per tonne.

“We originally expected the price of garlic to show a slight increase after the Spring Festival, but the corona virus outbreak has disrupted regular trends in the garlic market. Garlic processing factories were unable to package garlic for Spring Festival export until the end of February. Demand from the domestic market also declined during this period. This added to the pressure on storing garlic. The growing supply of garlic combined with declining consumer demand has caused panic in the Chinese garlic market. This naturally caused the price of garlic to drop. The price fell by $ 300 per tonne in 20 days.

“Conditions in the garlic industry have improved from late February until now. Many garlic processing factories have resumed operations. Foreign garlic orders are coming. And domestic demand is also gradually increasing. The price of garlic has increased by $ 60 per tonne over the past 10 days. Today’s price is more or less the same as yesterday. The price seems stable at the moment. “

Regular mixed garlic: 5,900-6,200 yuan [843-886 USD] per ton

5 cm of garlic: 6,600-6,800 yuan [943-972 USD] per ton

5.5cm garlic: 7,300-7,600 yuan [1,043-1,086 USD] per ton

These are the prices for normal white garlic.

Christian Kong from Shandong Fortunate Farm Trading Co., Ltd. recently shared his take on the Chinese garlic market: “We are currently able to process orders as usual. However, the majority of the market still does not look great. The European market is fine at the moment, but other markets such as the Middle East are suffering severe consequences from the COVID-19 outbreak. The overall volume of consumption is declining. Dubai in the United Arab Emirates is a prime example of this development. South Asian countries and Southeast Asian markets also have no shortage of supplies. “

“Before the Spring Festival, we estimated that the price of garlic would increase slightly after the festival period was over, and then the price would stabilize for about a month. We expected the price to gradually drop from here. the end of March. We did not expect the appearance of the corona virus and its impact on the price of Chinese garlic. We did not expect the price to drop so quickly. This development has major consequences for traders with garlic in stock.

“The demand for the domestic market is currently growing. However, daily consumption is still only about 60% of the consumption rate at this time of previous years. The garlic reserve is quite large, and fresh garlic from Yunnan has already entered the market. Henan will enter the market after May 1. The garlic stash for 2019 is huge and the new season is just around the corner. These developments put great pressure on garlic in storage.

“We expect the price to drop and stay low for at least several months. We mainly focused on the Asian and Middle Eastern markets. Our supply volume is quite large. However, we are also actively developing new markets to take our garlic even further. Foreign customers. We can provide a variety of garlic products according to customers’ requests. For example, the European market favors 5cm and 5.5cm garlic, and we have more than enough supply.

“Market management is of critical importance to garlic traders. We need to understand how the consumer market works, but it is even more important to understand the conditions in the garlic producing areas. We hope to connect with even more garlic traders around the world to exchange information and discuss the future of the garlic industry. Together, we can create a sustainable development of the garlic industry. “

For more information:

Christian Kong
Shandong Fortunate Farm Trading Co., Ltd
Phone. : +86 15069720600
WhatsApp: 0086 15069720600
Email: [email protected]


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