Since the start of 2016, Chinese garlic prices soared. This has impacted the domestic and the foreign market. Retail prices were as high as 14 Yuan per kilogram, with export prices as high as 12,000 Yuan per ton.
Slight price decrease, hesitant buyers
“The harvest of the new garlic is gathering speed around the middle of April, with Shandong garlic coming on the market by June. New supply is expected to bring prices down. Already in recent days, local garlic prices have decreased a little to 9 Yuan per kilogram and 1,100 Yuan per ton for the export market. Orders from abroad have decreased since prices started to come down. Buyers are weighting for the right moment to enter the market," explains Mr. Yang Qingtian of Jinxiang Qingtian Garlic Trading.
"Total garlic production is estimated to come down with 10% to 15% compared to last year's crop. The region around Jinan city, in Shandong province, was heavily impacted by frost waves in the beginning of the year. Other regions in Shandong, including Jinxiang, have suffered less damage."
"Currently, there is an estimated 200,000 tons garlic in stock in Shandong province. Overall supply will jump significantly when the harvest sets off. Retail prices are estimated to come down to 6 Yuan per kilogram and export prices are expected to decrease to 8,000 to 10,000 Yuan per ton."
Jinxiang Qingtian Garlic Trading is located in the county of Jinxiang, a centre of garlic production in China. The company has 3,000 square meters of storage facilities where it can store 2,800 tons of perishable produce. They employ 200 workers. Jinxiang Qingtian Garlic Trading is specialised in the procurement and processing of agricultural products, specially in the progressing of garlic.
