Why garlic price reached a new top in past three years

What is the situations at the domestic wholesales side?

 

In June 2019, the price of new garlic went through a rollercoaster ride, start rising then falling. At the end of September, prices have risen again.

 

Since the garlic is mandatory used in the table, why the market have the experience of such rise and fall?

Garlic prices rise along with wholesaler slow shipment.

 

At Xinfadi agricultural wholesale market in Beijing, the weekend morning garlic trading area is deserted, only a few scattered buyers.

Per the garlic restocking merchant opinion, now the best is 5.15 yuan, and the cheap one around 4.2 yuan/jin.

The price a little higher than the previous month.

 

Tom Hu, who has been in the garlic business for nine years, said the price of garlic is now 70 or 80 cents higher than at the end of September. Recently, Tom’s garlic trade is much less than before.

Beijing xfadi agricultural wholesale market garlic dealer Tom: one cart cargo sold seven or eight days, much more slow than before.

Data showed that the average price of garlic in Beijing xfadi agricultural products wholesale market was 4.2 yuan per kilogram on November 4, up 13.51% from 3.7 yuan on September 28.The main reason for the price rise in the terminal market is the rise in the price from origin.

 

What is the current situations in China main garlic market?

 

In Shandong jinxiang garlic market, the main garlic producing area, many traders gather every morning to inquire about the latest garlic market. Jenny, who has been deal with garlic for many years, is one of them. After brief communication with the seller here, he will go to the cold store where the trader stores the new garlic.

Jenny introduced that since the end of September, jinxiang garlic price continued to rise, now, the price of new garlic in the cold storage, has risen nearly one yuan per jin compare with the price in September. And now one price a day of refrigerated garlic, also let buyers and sellers are in wait-and-see situation.

Data shows, at the end of October jinxiang cold storage new garlic price is 3.75 yuan/jin, compared to the end of September about 2.8 yuan/jin cumulative rise of about 35%, compared with the same period of last year rose nearly 200%, reached a new high in nearly three years.

 

So why don't garlic traders sell their garlic?

Garlic prices have been pushed up by reduced supply from stores that are losing money

The main reason for this round of garlic prices rise is the origin of garlic merchants reluctant to sell, supply reduction.

At jinxiang, there are lots of garlic traders do not sell because of high costs, and the reason why the traders lose money is mainly affected by the new garlic market this year.

It is understood that, because of the decrease of planting area, the market for this year's new garlic price is expected to be high, at the beginning of June after the new garlic scales reached 3.7 yuan per Jin, then by the mood of chasing after the rise, all the way up to 4.48 yuan per Jin.

But by the end of June, as the actual output was higher than expected, the price of new garlic began to fall, falling to 2.45 yuan per kilogram in September. It is this roller coaster that has led to the general loss of storage in the state of reluctant to sell, which directly caused the supply of new garlic on the market.

In addition to the decrease in supply, the increase in exports is also one of the reasons for this round of garlic price rise

 

Will the garlic price decrease in the near future?

Short-term prices appear the possibility of a sharp rise or fall seems difficult. In the long term, the stock of garlic is about 3.4 million tons, which is a relatively high amount in the last decade. Once the Spring Festival is coming, the inventory digestion speed is slow, then may have an impact on the market mentality, the increase enthusiasm to sell goods going to be heavy and the price is quite possible to heavy decrease.

In addition, forward garlic prices will also be affected by next year's plantation area and yield. Also the market for planting area increase per current expectations, this will again let the garlic price lack of support.

 

Export garlic detail

 

Product	2019 China fresh garlic (Normal white garlic; Pure white garlic)
Size	4.5-5.0cm, 5.0-5.5cm, 5.5-6.0cm, 6.0-6.5cm.
Package	Packed in mesh bag or carton box 1)Loose packing: 10kg/ctn, 30lbs/ctn, 10kg/mesh bag, 20kg/mesh bag 2)Small packing:1kg/bag*10 bags/carton; 500g/*20 bags/carton; 200g/bag*50 bags/carton; 3pcs/bag, 10kg/carton; 4pcs/bag, 10kg/carton; 5pcs/bag, 10kg/carton. 3)Customized packing
Price terms	FOB CNF CIF
MOQ	26/27/28/29MTS FOR ONE 40RH CONTAINER
Shipment degree	-3°— 0°C
Certificate	BRC GAP HACCP ISO

 

Why the garlic from China is popular around the world?

-There is a whole industrial chain for kinds of garlic product. Once you visit the garlic capital, Jinxiang County, most of the farmer plant the garlic and do the package in the factory. Each type of service concerning garlic export are mature. This is the key for the competitive cost.

- China garlic cultivation dates back to a long period, we can say it have been brought from Middle East  about 2000 years ago, and locally named as Da Suan. During the long time planting, the smart farmers are well known how to grow the excellent garlic.

- Garlic grows better in the regions with temperature variation from 13 ℃ to 25 ℃. Particularly when grown in sandy soils, that's exactly the situation in some area of China.

-Most of people like the garlic not only it is a nutritious vegetables and mandatory used in all over the world, but also the dish is not easy to avoid the garlic flavor.