"Export price of Chinese garlic is stable, but overseas market demand remains weak"

The price of Chinese garlic was rather low at the beginning of the export season, so farmers were reluctant to sell. As traders with warehouse space began to purchase garlic, the price steadily climbed. The price stabilized in the last few weeks, but the cost of shipping still deters overseas buyers, so overseas demand remains weak. The volume of orders from overseas clients is not as big as in previous years. Mr. Li, sales manager at Jining Shangzhuo Food Co., Ltd., recently talked about current conditions in the garlic market.

The garlic dried well this season. The bulbs are large and heavy, and the color is beautiful. More than 30% of the garlic is larger than 6.5# or 7#. There is more than enough supply of large garlic for clients. The price of garlic from production areas in Shandong recently stabilized. Production areas are speeding up supply deliveries. The overall supply volume is satisfies market demand. Traders with warehouse space keep a close eye on the price. The price of top-quality garlic is firm.

"As for export, the current FOB price of 1kg bags of 5.5# garlic dispatched from Qingdao is around 930 USD per ton, which is nearly 90 USD more than last month. The price has been relatively stable in the last few weeks," said Mr. Li. "However, overseas market demand is weak. The order volume is not big. And the conflict between Russia and the Ukraine has further slowed down trade in our industry."

When asked about market predictions, manager Li replied, "there are many traders who speculate on garlic prices, and the impact of speculation on the price of garlic is huge. That makes it difficult to predict price developments in the garlic market. However, in early September the majority of the garlic has been entered into cold storage. The additional fee of cold storage will raise the export price of garlic."

According to manager Li, the cost of shipping remains an important influence on the decisions that buyers make. Shipping fees recently came down. The current shipping fee between Qingdao and Europe is around 8,200 USD per container, which is still much higher than usual. Some countries have expanded domestic garlic production because the cost of shipping was prohibitive, and that naturally affects Chinese garlic export.

For more information:

Mr. Li

Jining Shangzhuo Food Co., Ltd.

WhatsApp: +8613213293300 

WhatsApp: +8617362151011 

E-mail: wangjunjie@shangzhuofood.com 


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