In September, the China garlic market has officially started the main sales period for cold storage garlic. This month’s market has stable prices. However, logistical challenges and seasonal labor changes remain. Buyers should pay close attention to these dynamics. Below is the latest market update to help you plan your upcoming procurement arrangements.
Cold Storage Garlic Sales Commence Amid Rising Costs
As the fresh garlic summer season ends, the market now focuses on cold storage inventory. Because of higher warehousing costs, the price of Chinese garlic has risen by about $80 per ton since August. Prices for cold-storage Normal white garlic (or red garlic) and Pure white garlic have remained stable, despite rising costs. This stability comes from international buyers purchasing large volumes of fresh garlic. They do this mainly from June to August, which is the peak season. Sales volumes have dropped, but prices stay strong and steady. Buyers can still secure inventory at a good rate.
A New Wave of Freight Rate Increases
While garlic prices remain steady, the logistics landscape is shifting. Driven by various global factors, ocean freight rates have entered a new cycle of increases. Shipping space is tightening, and freight costs are trending upward. Our clients keep rising ocean freight rates and cabin shortages in mind. Booking shipments early can help reduce the risk of delays.
Approaching Chinese Holidays and Labor Shortages
In late September, China will celebrate two big holidays: the Mid-Autumn Festival and National Day. At the same time, this period marks the critical planting season for next year’s fresh garlic crop. A significant part of the agricultural workforce will shift to field operations, leading to a labor shortage.
History shows that this dual impact will increase labor costs and reduce production capacity. Factories will deal with serious understaffing during this time. This makes it hard to fill large garlic orders quickly and efficiently.
To avoid holiday disruptions and the risks of rising freight rates, we strongly recommend placing your orders as soon as possible. Securing your inventory early stabilizes prices. It also makes sure your goods are processed before the labor shortage hits.
If you plan to buy garlic soon, contact the FENDUNI sales team right away. They can help confirm your needs and set up your shipment schedule. Let’s team up to keep your order production smooth and steady this holiday season!