Related data show that China exported 5161000 tons of garlic from January to April, affected by the appreciation of RMB, and 52-57 million tons in the same period from January to April 2020, down 1.83% year on year. May data is not yet available, but it is not expected to be optimistic year-on-year. The reason why the export of the first four months fell year on year was mainly due to the sharp increase in domestic garlic prices. The price of mixed garlic in June was 4.6 yuan-5 yuan / kg, while that of the same period last year was RMB 2-2.2/kg, up 128.57% year on year. The high price has made garlic export trade pressure increase greatly.
"The appreciation of RMB has indeed affected garlic export to some extent, but the impact is very limited in my observation and understanding. At present, the RMB is still in appreciation, but the rising trend has slowed down significantly compared with the previous period (April-May). Garlic export has officially entered the peak season since early June. The export volume of garlic is less than that of the same period in previous years due to the high unit price and the soaring shipping cost. In general, the higher export price can not make up for the decrease of sales volume, and the overall garlic export volume is slightly lower than that of the same period in previous years. " Annie, sales manager at a food company limited in Jining, said.
In 2021, the planting cost of garlic increased significantly, including land rental costs, pesticides, compound fertilizer, labor costs, etc., which all pushed up garlic prices. From the overall export situation, export companies are facing challenges brought by the rising price of raw materials, upward freight and appreciation of RMB. In addition, affected by the epidemic, the global logistics transportation is blocked, the shortage of container supply leads to the soaring freight prices and the sharp reduction of profits of export enterprises.
"In the past month, the overseas epidemic has improved significantly and some countries have lifted the blockade to some extent, especially in Europe, which has released some market demand space," Ms. Annie said. At the same time, garlic prices are high this year, and customers can not accept high prices at first, but after a period of market adaptation, customers gradually adapt to the price changes. With the combination of these two factors, the recent export volume has begun to increase slowly. "