The garlic production sector in Córdoba is having a difficult time because of falling prices on the Chinese market. Spanish producers believe that the export of local garlic will gain its momentum when China will freed from the excess of its garlic.
The last few years, the largest producer of garlic in the world – China, has experienced successive crop failures. In this connection, the prices for garlic were higher than this year. A significant decline in prices this year is caused by an increase in production areas in China, which led to an excess of products. This circumstance has led Spain to the fact that it lost its two main customers: Brazil and Taiwan.
The domino effect has also led to the fact that prices for local garlic are decreasing, the export of garlic is significantly slowing down. The President of the company of garlic producers Montalban (productores de ajo de Montalbán), Miguel del Pino is sure that the changes will happen in the near future, when China will pass the peak of sales of its surplus and restore their normal prices.
A good factor that gives confidence to local producers of garlic is the presence of quotas established by the European Union (EU) for the purchase of foreign goods. It has been established that European countries can only acquire about 55 million kilograms from China, 19 from Argentina and six other countries. At the same time, Europe needs more amount of garlic to meet the demand of the countries that massively consume the garlic.
Thus, warehouses Spanish garlic remain filled in anticipation of changes in the international market. At the same time, garlic continues to be sold, but not at that price, which is expected at the beginning of the campaign. The market price continues to fluctuate.
Ukrainian garlic cooperative “UkrUp” offers:
+380 50 694 4199 Tatiana
+380 67 446 5295 Anna
By phone and WhatsApp
Posted by Andrey Marchenko
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