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Two factors affect garlic exports in Shandong Province
- Aug 01, 2017 -

From the mass network

Garlic harvest in 2017, but the price is close to halving. At present, the wholesale price is as low as less than 6 yuan / kg, down more than 40 % from the same period last year. There is a situation of increasing the price of garlic and hurting farmers. Industry insiders are pessimistic. However, statistics show that in the first half of the year, our province exported 633,000 tons of garlic and its products, with an increase of 7.84 % and 26.29 % respectively over the same period of last year. Why can garlic export achieve reverse growth, and why does it present a different scenery of " flowers inside the wall and fragrance outside the wall"?

According to the feedback from the inspection and quarantine department, there are two main factors: First, the structure of export products has changed, and high value-added products have gradually increased. In recent years, in order to expand the influence of the international market and meet the consumption demand of the middle and high-end markets, the inspection and quarantine department, together with the local government, has actively guided enterprises to extend the industrial chain, promote the on-line deep processing projects of enterprises, increase the added value and profit rate of products, and promote the transformation of garlic agriculture into garlic industry, with the export structure of garlic products slowly changing.

Before 2016, fresh garlic and garlic products accounted for nearly 80 % of the province's total exports and about 60 % of its value. In 2017, the value of exports of dehydrated garlic such as dehydrated garlic flakes, dehydrated garlic granules and dehydrated garlic powder, frozen garlic puree and garlic cloves products, black garlic and other high value-added products accounted for more than 45 % for the first time, contributing more than 70 % to the export growth of garlic and its products.

Second, the structure of the export market has changed, with strong demand from developed countries and regions. Our province exports fresh garlic and other primary agricultural products with low added value and low profit margin, with an average export price of US $ 1.52 / kg. The markets are mainly Indonesia, Malaysia, Vietnam and Brazil. The main processed garlic products exported are dehydrated garlic, garlic rice, black garlic and other products, among which the added value of dehydrated garlic products such as dehydrated garlic flakes, dehydrated garlic granules and dehydrated garlic powder, is 5 - 10 times that of fresh garlic, and the added value of black garlic products is more than 20 times that of fresh garlic, with an average export price of US $ 4.46 / kg. The markets are mainly EU, US, Japan and so on.

In the first half of this year, the value of garlic and its products exported to the US, EU and Japan reached 246 million US dollars, 119 million US dollars and 67 million US dollars respectively, with an average increase of more than 150 %, while Indonesia's traditional first export market was 143 million US dollars, with an increase of only 11 %. The US became the first export market of garlic and its products in our province. The total amount of high value-added products exported to developed countries and regions has increased, creating unique scenery of “flowers inside the wall and fragrance outside the wall" and prompting garlic exports to soar against the wind.

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