China’s Garlic Exports Crosses 200 Thousand Mt For the First Time in 2022

Fresh Garlic

Vegetables

China

Market & Price Trends

Published Sep 5, 2022

Garlic is an important element in the Chinese cuisine and export basket. The country consumes and exports large volumes of the root to other countries. This year, China has a surplus of garlic. With stocks from the previous season and high production this year, there is enough garlic with the traders to be exported. The higher supply has also stabilized and reduced the price of garlic. The country recorded a YoY increase of 48% in the volume of garlic exports in July 2022. With lower prices, it is likely that the country will continue to export large volumes of garlic in the coming months.

This year, the production and export season for garlic in China started in the third week of May. The crop had gotten more time to grow this season and the harvest was abundant, with the overall product quality being better than last season. Apart from the high volume of harvest, garlic traders in China still have a lot of garlic from 2021 left over in storage, which is ensuring that the prices are stable in the local markets. Moreover, the prices are already at the lower end and there is not much room for the prices to come down even further. With favorable pricing, buyers are looking to purchase large volumes to stock their warehouses to ensure they have ample volumes when the peak export season comes in.

As of July 2022, China’s garlic exports are gratifying this year. Based on the customs data, China's garlic exports in July 2022 reached 241 thousand mt and were worth about USD 231 million. This is a YoY increase of 48% in volume and 26% in value of exports, respectively. For the first time since the beginning of 2022, the export volume of garlic exceeded 200 thousand mt for the first time in the last month. Among them, the quantity of fresh or refrigerated garlic was approximately 217,400 tons, representing a YoY increase of approximately 31.45% over the 2021 export volume. China's fresh or refrigerated garlic exports remained in the top ten destinations for Chinese fresh or refrigerated garlic exports.

Domestic Garlic Prices in China Since the Last 6 Months

Source: Tridge

The increase in garlic exports this year is an outcome of stable garlic prices in the domestic markets. The average purchase price of garlic in July this year was around USD 0.90 per kg, which is lower than the average price observed over the last 6 months. Higher volume in storage and increased production have pushed down the prices and laid a good foundation for the positive growth of garlic exports. The outlook for China’s garlic exports remains positive with a strong demand for Chinese garlic in the international market. China has managed to make a mark since the beginning of the season in June, and it is likely that the trend will continue in the upcoming months.