Markets update: Chinese garlic prices remain firm as yields decline
According to Mintec, the commodities analyst, yields are forecast to fall by around 9% year on year despite an increase in planted area, due to adverse cold weather during the winter months of December and January.
In addition, low carry-over stocks from the processing industry have supported demand for the raw material.
Garlic prices rose rapidly last year, driven up by limited supplies of raw material, as a result of lower production of fresh garlic in China.
Output last year is estimated to have fallen by 10% year on year on the back of reduced planted area. Farmers have planted less garlic crops due to low garlic prices seen in the Chinese market in 2013 and 2014.
