Recent reports have suggested that the Chinese garlic market is firming due to adverse weather conditions and transportation influences.
After a stable November and December, a sudden increase has been reported in the first two weeks of the year, with flake prices increasing by 14% since the 3rd January 2021.
Weather conditions affecting the garlic market
Current reports suggest the fresh garlic crop for 2021 will be significantly reduced after colder than normal weather conditions in the growing areas.
COVID 19 creating problems in transportation
It’s no secret that COVID 19 has had a huge impact on the transportation industry, intensifying sea freight rates and resulting in fewer blank sailings being announced over the New Year period.
Many exporters have had to include freight increases onto their quotes, to protect themselves from losing money in a time of uncertainty.
Garlic prices predicted to keep rising
Chinese New Year drives higher domestic garlic consumption, mixed with the problems that the market is facing, the prices are looking to keep rising until the end of March 2021. It is suggested to cover short term requirements to minimise price increases.