"The overall garlic export market this year is not very stable, and the recent export volume is quite different from the previous period. In terms of international logistics, on the one hand, sea freight has been slowly falling in recent months, which has formed a significant gap with the previous rapid increase in sea freight.
"On the other hand, in the early stage, there was a shortage of containers in the major shipping companies, and the delay in the shipping schedule was obvious. At this stage, the situation is improving. Thanks to our huge export volume, ocean freight can often get more favorable prices, and customers can also benefit from it." Ms. Monica Yang from Laiwu Manhing Vegetables Fruits Corporation in Shandong Province recently shared her views on the current situation of the garlic export market with Freshplaza. One Belt One Road Transportation
As one of the largest exporters of agricultural products in China, Shandong Laiwu Manhing Vegetables Fruits Corporation was established in 2001 and was the first to establish a ginger and garlic breeding base that meets the global Gap standard. After years of development, the company has formed a complete industrial chain integrating planting, collection, storage, processing and export.
In the past few months, the pandemic has continued to recur in various places, causing a large number of workers to stay at home all the time, and the market has fluctuated slightly, but the overall impact is limited.
"Among them, the price dropped significantly in August and began to stabilize in October, showing an upward trend. Currently, sea freight to Europe (such as Rotterdam, the Netherlands) is around $4,000, and to the UK is around $4,900. As far as garlic specifications are concerned, more than 70% of this year's garlic size is over 6.0cm, which better meets the needs of some overseas markets, such as Europe, which prefers large-sized garlic.
When talking about the reasons for the low garlic prices, Monica said, "Affected by the global public health event, shipping risks, labor costs, and rate of empty return have all increased to varying degrees. For example, a large number of export containers are piled up in foreign ports and cannot be transported, resulting in a relative shortage of containers. Secondly, the serious problem of port congestion makes the shipping schedule unstable. Under the combined effect of the above factors, the domestic garlic stock is high and the price is low."
Under its own brand "LAIWU MANHING", its garlic is mainly exported to Canada, the Middle East, Bangladesh, Indonesia, various European regions, Singapore, Malaysia and other markets. At the same time, the company is actively developing new markets.
As for the impact of the Russian-Ukrainian war on garlic exports, Monica said, "Considering the volume of exports to Russia and Ukraine in previous years, the impact of the closure of these two markets on garlic exports is undoubtedly huge. Faced with this situation, we decided to suspend exports to these two markets."
After nearly 20 years of accumulation, Laiwu Manhing Vegetables Fruits Corporation has built a factory with a total area of 32 hectares, annual processing and export of agricultural products of more than 400,000 tons, 30 cold storages with a capacity of about 20,000 tons, and many planting bases in different regions. The products cover four series of preservation (various fruits and vegetables), pickling, dehydration and quick freezing. Among them, the garlic varieties mainly include ordinary white garlic (1:1 ratio of white and purple) and pure white garlic.
Laiwu Manhing Vegetables Fruits Corporation
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