“Due to extreme cold and snow fall in early Spring, garlic yield has come down by 10% to 20%. The size of the garlic coming from Jinxiang, the central region of Chinese garlic production and export, is also slightly smaller than in previous years,” explains Louis Liu of export company Jinxiang Lian Yi Trading Company.
“At the moment, it is estimated that there is 100,000 tons of old garlic in stock. Last year, garlic stocks reached 300,000 to 400,000 tons. One of the factors that has led to the high garlic price throughout this season is the relatively small amount of garlic in stock. Since the end of March, the white garlic has almost entirely been sold out.”
“In Jinxiang, there are two garlic varieties: red garlic and white garlic. Red garlic is harvested earlier than the white garlic. Companies have already started to place orders for the red garlic crop. Harvest of the white garlic will start next week. Average market prices for new white garlic is usually around 9 yuan per kilogram. This year, prices are expected to start at 10 Yuan per kilogram or higher."
“Over the past two weeks, the purchasing price of red garlic has been flat. The new crop is gradually starting to become available. It is estimated that there will be 250,000 tons of new red garlic in stock. This early new red garlic crop is typically used for peeled garlic for the domestic market.”
“Farmers still hope to receive high prices. Eventually, when more of the new crop will become available, the price will come down. That is why many buyers are cautious to place orders at this point. The market has come to a hold. Over time, the old garlic in the warehouse will start to sprout, it cannot be kept indefinitely. After the garlic is harvested, the first step is to place the garlic outside in the sun to prevent mildew. After that, the dried garlic will be stored in cold storage facilities. Storage is usually done between the middle of June and the middle of August. The garlic is likely to start sprouting if it has not been stored by the end of August."
Solo garlic from Henan and Yunnan
"The garlic crop from Henan and Yunnan province has not been affected by the weather. The harvest in these regions starts a couple of weeks earlier and the crop has been good. The garlic coming from these provinces is different than the garlic grown in Shandong province. Generally, this crop is exported much less. The garlic variety is called Solo garlic. Only a few countries purchase this garlic variety, such as Japan. The garlic is smaller in size and much more spicy. Its price is higher than the price of red and white garlic. The garlic that is exported often passes through the Jianxiang market before it is exported abroad. Jianxiang has a long history of garlic trade, and its market and logistics infrastructure are developed and well integrated.”
Anticipating buyers
“We have received orders already from Brazil and other South American markets. We have stable clients in over thirty countries. We keep our clients informed about price developments on the Chinese market, so they can decide when is the right moment to place an order. Each year, we export around 250 to 300 containers. Some clients, such as Chinese supermarkets in Europe, Australia and the US, need garlic every day. These companies will continue to place orders, even though the price has gone up. Other clients have less regular needs, and can decide to wait a couple of weeks before they place a new order.”
“We export red garlic to Africa. To Australia, Europe and North America we mainly export white garlic. White garlic is different to red garlic; its appearance is unblemished and its flavour is different. Red garlic is more spicy and has a stronger flavour. Companies are now waiting to place an order. If the price of the garlic is too high, perhaps part of China’s competitiveness is lost. This could be partly offset by growing demand from the domestic market.”
