The reduction in the manufacturing of fresh garlic, and also the inability to sell certain items because of mold, the cost at the source is growing, and many foreign customers are stuck still waiting for the price to be fixed however the interest in purchasing is not as high. The gentleman. Wang is the sales director of Jining Shangzhuo Food Co., Ltd. He discussed his thoughts regarding the market for garlic and the market outlook over the coming weeks on FreshPlaza.

As per his research, the vast majority of Southeast Asian regions have recently bought the old variety of garlic. The cost of old garlic is about US$70 that is a lot less expensive than the price of fresh garlic. But, the majority of old garlic will not be ideal for transporting long distances and the bulk of it are processed to make dried garlic flakes to be exported.

“In terms of areas for production in terms of production areas, new garlic was picked in May midway through. The yield was 10-15 percent lower than similar time last year. This is due in the first place that the area of planting within the Shandong production zones is decreasing. In addition, young-ripening garlic was afflicted by yellow leaf diseases, and also the specification was affected in a way.

Wang stated: “In terms of quality when it comes to the harvest of garlic this time of year, continual drizzle was observed in the process of drying and caused the growth of mold and the resulting products were contaminated with more than 15 percent. Second, the size of new garlic in this harvest is usually tiny. The garlic in the 4.5-5.0 size is responsible for between 55% and 60 percent, while the garlic of the 6.0# or greater size is only about 10 percent. Overall, the overall quality of the garlic this year is significantly lower than prior years.”

Prices-wise in terms of prices, the prices at base have been highly volatile lately, fluctuating between rising and dropping. This week’s prices are around 30% higher than the previous week. “The present export quotes seem to be quite turbulent. Because of the low amount of orders from overseas certain exporters have knowingly offered low prices in order in order to attract new customers,” said Wang. “The currently quoted price for 5.5-size garlic FOB Rotterdam is between US$1,750 and 1,850 per tonne. It has increased by approximately US$400/ton over the price of 45 days prior.”

Asked about the expectations for exports in the coming months, Wang said, “Due to the high price currently in place international customers are holding off. The expectation is that foreign traders will need an extended period to be able to bear the price increase.”