According to the official website of the Ministry of agriculture and rural areas, garlic prices have declined for four consecutive weeks. In Beijing's Xinfadi market, the price of old garlic continued to decline, and the price of new garlic also fell below 3.0 rmb per kg this week. The reason is that the merchants believe that this is related to the sharp increase of production this year caused by the market expansion after the garlic price rise in 2019. Meanwhile, due to the blocked garlic export, it also aggravates the current situation of market oversupply.
In this season, the garlic planting area in Shandong increased by 10% - 15% compared with that in the previous season, and the garlic size was much larger than that in the previous year, and the per mu yield increased by nearly 10% compared with that in the previous season. This is mainly due to the careful cultivation and management of garlic farmers in this season, hoping to maintain the quality of garlic and continue the high price of last season. However, the increase of planting area and per mu yield in the production area leads to the over supply of garlic in the market and the lower price. Compared with the price of 3.4-4.0 rmb / kg at the beginning of last year's harvest season, the current purchase price of new garlic is only 1.2-1.4 rmb / kg, and the price after drying is only 2.4 rmb / kg. In addition to new garlic, the price of old garlic has also dropped seriously recently, from about 7.0 rmb / kg in early April to about 3.2 rmb / kg this week.
In terms of export, as the fresh garlic needs to be dried after harvest, most of the exports have not yet begun to accept the new garlic orders. The export of new garlic is expected to officially start at the end of May. By the end of April, some companies had stopped the delivery of garlic. We hope that we can export products after the market digests the products that were imported in the early stage. The data show that demand in Europe has increased dramatically in the first two months. In order to pick up the goods as soon as possible, some businessmen in Russia choose land transportation with high cost. After several weeks of concentrated exports, the European market is now relatively stable. Experts predict that garlic in China will run at a low price this year.
At the same time, the Spanish garlic has also entered the harvest season, which can't affect the garlic export of China. China's garlic is the most in the world, and no other country can match it in terms of planting area and output. Spanish garlic is only likely to affect the market in the short term, with limited scope. Therefore, the international garlic market mainly depends on the trend of China's garlic market. In particular, the price of garlic in China is lower than other countries, so it has more advantages in trade.
