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Garlic Prices in China Recovering

June 25, 2019

This month, large quantities of fresh garlic have started to appear on the Chinese market while garlic prices have continued to rise. Sales of fresh garlic now exceed those of preserved garlic, and the popularity of preserved garlic with buyers is declining.

In the second week of June, the average price of fresh garlic at Shandong’s Jinxiang Market was 8.33 Chinese yuan per kilogram, corresponding to an increase of 18.16% compared to the previous week. The volume and value of fresh garlic sales were 26,301 tons and 219.1 million yuan, respectively, corresponding to week-on-week increases of 21.54% and 43.61%.

Meanwhile, the average price of preserved garlic was 6.57 yuan per kilogram, an increase of 2.98% over the previous week. The volume and value of preserved garlic sales were 22,094 tons and 145.1 million yuan, respectively, corresponding to decreases of 18.06% and 15.62% compared to the previous week. It can be seen from these figures that fresh garlic is starting to overtake preserved garlic in terms of both volume and value. At present, the moisture content of the fresh garlic is basically in accordance with the required standards for processing and export and the fresh garlic is suitable for trading, whereas sales of preserved garlic are expected to draw to a close in the near future. However, as the price of fresh garlic is still higher than that of preserved garlic, the latter has some advantages for the time being and will continue to be traded for approximately another ten days.

Garlic prices in China have continued to rise this year, which is predominantly attributable to a decreased planting area as predicted last year. According to satellite remote-sensing data, the total planting area of the main garlic-producing areas in China in 2019 was found to be 986,263 acres, including 386,506 acres in Shandong Province, 238,028 acres in Henan Province, and 188,476 acres in Jiangsu Province. In particular, the planting area in Shandong’s Jinxiang County, China’s most important garlic-producing region, was determined as 86,306 acres, which is 18.78% lower than the planting area last year.

The total planting area of garlic in China this year is now at its lowest point since 2015. It is expected that more than 6 million tons of fresh garlic will be harvested in China this year from the 986,263 acres of the main production areas plus additional smaller production areas, and approximately 900,000 tons of preserved garlic remain from last season, bringing the total amount of garlic on the market this year to almost 7 million tons. Although this represents a decrease from last year’s 8 million tons, it is still a large quantity, indicating that there is no basis for a large increase in garlic prices this year.

Image: Pixabay