Due to the unfavorable weather, the total harvest of garlic in China is expected to have decreased by 20 percent. During the crop’s growing period, the harsh weather conditions have reduced the quality and quantity of the produce, mainly in the Shandong Provence.
As a result, the price of garlic flake is already up by 32 percent in January 2022 compared to last year.
The tight market is under further pressure from local traders trying to profit from the small crop quantity by buying the stock for the future. There is already a high demand for garlic in Europe, which China finds hard to fulfill due to the global shipping container congestion.
It is expected the freight rates are unlikely to decrease anytime soon, and since the Chinese New Year has started, the market will stay firm with good demand for the spice.
Already the garlic market was on a primarily high across 2021 due to the decrease in stock, speculative local buying, and increase in ocean freight.
It was reported in November 2021, Grade A garlic powder was quoted to be at $3,200 per MT CIF Rotterdam.
In December, the price eased a bit to $3,000 per MT CIF Rotterdam due to a decrease in the export demand.
The garlic market is expected to stay firm this year in China and across the Globe since the country is the leading exporter of the commodity. Moreover, the decrease in the acreage of crop planting in 2022 by 10 to 15 percent is likely to support the market. The delay in the planting due to the rain has led to a new concern about the delay in harvesting the crop. As a result, the smaller quantity of produce compared to 2021 will keep the market firm for the first quarter of 2022.
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