Price Chinese garlic now beats European

"We have decided to wait for another two to four weeks before loading more new garlic to Europe. Garlic prices remain high, which is making Chinese garlic less competitive in Europe compared to Spanish garlic. A couple of our first containers will arrive on the market in the Netherlands in two weeks. We will wait for the first sales to see how the situation has developed. I am afraid we will lose money on this first shipment because garlic prices in Europe are currently lower than garlic prices in China," says a garlic exporter from Shandong, China. "Most of our clients are holding off on orders right now."

"Currently, garlic prices in Europe hover around 2.20 Euro per kilogram. In China, prices go up to 2.70 Euro per kilogram. We believe the price in China will come down eventually, so the risks if one wants to export at this moment in time, are high. Export to other markets such as Indonesia and Brazil has also significantly reduced."

"For a big part, the current situation is not normal. Part of it can be explained by the situation on the local market. Farmers have started to buy the new crop to plant in October. Because garlic prices have been high this year, this year's new plantings will be considerably larger than last year's. Another reason why prices are elevated is that farmer's and trading companies keep holding big stocks. Eventually, they will have to start lowering their price and start selling."

Publication date: 6/23/2016