Traders welcome fresh garlic on the Chinese market, and expect the price to rise

The price of garlic showed a definite rise in May. The new garlic season of 2021 has begun and people in the garlic market are excited. There is huge demand, both in the domestic market and abroad. Traders and processing factory owners have begun purchasing fresh garlic to prepare for the peak of the new garlic season. Damon Dai of Qingdao Muyi International Co., Ltd. talked about current market conditions and predictions for market developments in the foreseeable future.

According to Damon the supply season in Jinxiang began one week later than last year because of heavy rainfall in the garlic production areas. “We had already finished sun-drying our first garlic around this time last year, and the first shipping containers with processed garlic were already on their way to Europe, South America, and the Caribbean. This year, however, we had to deal with rainy weather. The garlic has not completely dried yet, but is only at 80%. Furthermore, most of the processed garlic is in the hands of garlic farmers.

“The processing factories are even further behind in their garlic drying process. We can only estimate that the first shipping containers for long-distance destinations will leave by the end of this month or early next month. We have already promised more than 20 shipping containers full of fresh garlic for more than 10 clients in South America, Europe, and the Caribbean. Most of these orders will be dispatched by the middle of June, but we have already finished packaging a small volume of garlic mesh bags.”

“Conditions in the export market are most uncertain because of the rising shipping cost. The shipping cost began to swiftly rise during the initial stages of the pandemic early last year, and this trend still continues. In January of this year, for example, shipping one cold storage container from Qingdao to Rotterdam already cost 3,000 USD more than in December last year. This is a heavy burden to bear for exporters and importers. And the price of shipping to the Middle East and Western Europe increased by 1,000 USD in May, while cabin space for cold storage containers is difficult to find on North American shipping routes. The price is expected to continue to rise in June. We advise large companies with plans to purchase garlic to confirm delivery details as soon as possible.”

When asked about expectations for the fresh garlic season, Damon replied, “The price of fresh garlic is much higher than anyone could foresee in the beginning of May, because the price of old garlic is relatively high still. We expect the price to slightly fall again once the volume of dried garlic grows and market supply is more abundant. Still, farmers and traders have high hopes for the price this season. This will also have an impact on price fluctuations later in the season. Human behavior can stimulate the garlic market later in the season and cause the price to go up again.”

Qingdao Muyi International is a company specialized in the export of garlic, ginger, chestnuts, pears, apples, and honey pomelo, as well as processed garlic products such as garlic powder, garlic cloves, and garlic slices. The company integrates production and processing with export. Muyi International has clients on five continents in more than 50 countries. The company is GAP, SMETA, and BRC certified.

For more information:

Damon Dai

Qingdao Muyi International Co., Ltd.


WhatsApp: +86 18552046556 


Source: Fresh Plaza