Chinese garlic prices rise as harvest declines by 30%

Global garlic prices remain high in the new season and are showing a tendency to rise further due to declining production in major supplying countries. China, the world’s leading garlic producer, is having the greatest impact on the market. According to market participants, the country’s harvest has declined by 30% this year, reducing supplies and supporting high prices in the international market.

Additional pressure on global supplies comes from lower garlic production in the United States, Mexico and Peru. The main reason has been unfavorable weather conditions associated with the El Niño climate phenomenon. Simultaneous harvest declines in several countries are tightening the market and contributing to higher prices. Unlike the previous season, when prices remained low and continued to fall, market conditions this year are significantly more favorable for producers.

According to Natural Trading CEO Alvaro Olivera, garlic prices in the US and Mexican markets are currently stable at high levels, with an upward trend. He noted that the previous season started with low prices and ended with an even greater decline, while the situation has changed significantly this year. Reduced Chinese garlic supplies and smaller harvests in other countries are creating conditions for prices to remain elevated.

Meanwhile, illegal shipments of Chinese garlic are complicating the situation in the Mexican market. According to producers, smuggled garlic creates unfair competition and puts pressure on prices for products imported through official channels. Undeclared imports make it more difficult for legitimate suppliers to operate and could restrain domestic price increases even as overall supplies decline.

Against this backdrop, garlic producers in Argentina’s Mendoza province are preparing to begin harvesting, hoping to benefit from favorable conditions in the global market. However, farmers are concerned about possible rainfall, which could negatively affect garlic bulb quality and marketability. A further challenge is the significant increase in production costs, with garlic cultivation costs per hectare in Argentina rising by 50%. Thus, despite high global prices, producers’ profitability will depend on weather conditions, crop quality and cultivation costs.

Tags: China, garlic