China: Chinese garlic prices likely to go down

Despite the high prices of Chinese garlic, Hengfeng Fresh Produce is optimistic that prices will continue to decrease. One of the main reasons is due to the new garlic season. This garlic is coming from the provinces of Yunan and Henan.

The Henan early garlic will be harvested at the beginning of May while Yunan has already been harvested.

"The new garlic season will begin at the end of May and the earliest estimated disposal will be week 23. New crops are growing in the field and there is an estimated 25% increase in the planting area. As a result, we are estimating a 10% increase in the first yield." says Karen Shen, sales manager of Hengfeng Fresh Produce.

Karen also said that the Chinese garlic prices have greatly decreased since March. For example, loose normal white garlic 5.5 cm in 10 kg carton was FOB Qingdao $2390 per metric ton and now, it is only $2175 per metric ton.

Meanwhile, it was reported that there are still 90,000 tons of garlic in the cold storage which Karen believes a sign of less demand in Chinese garlic from both domestic and foreign consumers.

HengFeng Fresh Produce offers high quality garlic bulbs. The company is now offering solo garlic for the European market. The company is also exporting ginger, apple and carrots. Products are also being offered to Middle East, Russia, SouthEast Asia and other parts of the world.