Hi,
See below a market report I asked the shipper I work with, for. It’s difficult to say what is going to happen, as this year is going to be the first year in 3 years, that Garlic will be dehydrated. There is stock of really old material ( dark ) left over, so please be careful with very low prices. Current levels are at almost lowest for a few years, so some would see this as a buying opportunity…who knows !!
“Hi,Andrew:
Crop size this season is abt 30% bigger than last season. Our New crop fresh garlic starts every year end of May/Beginning
of June. At the beginning, fresh market is strong, with the big quantities coming down, these days market
has been weeker.
Dried garlic flake production will starts in 2nd half June. The market will depend on the following
factors:
1. produced quantities during the production season.
many small dehydrated factories were forced to closed becasue of the enviroment problems. It will affect
the quantities being produced this season. Production season will end in August.
2. the left good material from the stock is extreme limited after two or three year’s shipping.
3. Big demand of the fresh garlic market.
above 80% of the garlic will go into fresh market,
left material will be used for the dehydrated market.
So Market will follow with the fresh market
4. Dealers sold out last crop at very high price. They have enough cash this season to collect the material again
to affect the market.
5. The very high labor cost and increasing cost of the electricity, water cost, tranportation cost.
Production cost this year is almost doubled than 2 or 3 years ago.
Considering this season the fresh garlic quantities are much bigger, we would like to offer the price as follows:
new crop 2011
garlic powder at usd1760/mt
garlic granule at usd2080/mt
garlic flake at usd2350/mt
cfr net felixstowe shipment starts from June/July till December
Old Crop
Garlic powder at usd1520/mt
Garlic granule at usd1830/mt
cfr net Felixstowe
Please check if could secure any biz.
Best regards
