Garlic price in China has seen great fluctuation since the fresh garlic hit the market and the price had been hiking starting September. The status is normal supply-and-demand phenomenon, said the sales champion at Xinfadi wholesale market, that the price is expected to fall earlier next year.
Now the wholesale price at Xinfadi market is between RMB6.8-10 (USD0.96-1.42)/kilo, with RMB3.2-5.4(USD0.45-0.77)/kilo compared with the same period last year, which accounted for 95.35% increase. According to the sales champion, the garlic price around the country became unsalable before last June, especially fresh garlic. The fresh garlic price of Yunnan Province origin was once at RMB1.2(USD0.17)/kilo, and it was almost the same case with the ones of Henan Province and Shandong Province origins with prices between RMB1.2-1.6(USD0.17-0.23). Consequently, the garlic farmers could not make ends meet and they reduced the plantation.
The market expectation is very high owing to the smaller planted acreage. The price began to hike upon its appearance in the market, and the price in June reached RMB7.4(USD1.05)/kilo, then shot up to RMB8.96(USD1.28)/kilo.
Garlic is predominantly grown in Pizhou of Jiangsu Province, Shandong Province, Qixian County and Zhongmou of Henan Province. Mr Zou Jianguo, a garlic dealer from Shandong Jinxiang main garlic production area, said that the garlic price in Jinxiang has been climbing continuously since the end of September. Now cold-stored garlic is RMB1.0(USD0.14)/kilo more expensive than in September.
According to the staff with Xinfadi wholesale market, amid garlic out of the repository sold out, inventory garlic price soared. Because the purchasing price for stored garlic is relatively high, the selling price will depreciate until the beginning of next year for late sales pressure is too large.
The history repeats itself. Prices in 2015 have almost doubled in the past year to a record as poor weather and a surge of interest from speculative buyers has turbocharged the market. Given China accounts for more than 80 per cent of the world's garlic exports, importers are struggling.
In 2009 and 2010, prices soared after speculators bought up bulbs following smaller planted acreage and a belief garlic would ward off swine flu. Prices are now higher than those seen between 2009 and 2010, according to Mintec, the commodities data firm. Garlic has not been the only niche market targeted by China's speculators.
