"The high prices are caused by a combination of reduction in total garlic output due to extreme weather conditions early in the year, and strong demand from the Chinese domestic market. Current new garlic available is less than this moment , and the amount of last year's garlic that is currently remaining in stock is also less than around this time last year. Therefore I do not expect garlic prices to come down any time soon," Sherry of Laiwu Wanxin Economic and Trade comments. The company is based in the city of Laiwu in Shandong province and exports garlic, ginger and potatoes.
"Demand from Asia has been growing stronger since the end of the Ramadan and customers are willing to accept the elevated prices. Currently, the garlic can be kept outside in the open air. In August, the garlic will be moved into cold storage facilities. When this happens, electricity, management and warehouse costs will add to the current price. This could push prices up even further. Recent exports to Brasil have also been strong."
