Beijing Garlic Prices Enter a Rising Phase, A Brief Market Analysis
“Eating garlic regularly is very good for the body, because the sulfur compounds contained in garlic have extremely strong antibacterial and anti-inflammatory effects, inhibiting and killing various cocci, bacilli, fungi and viruses, and it is currently the strongest antibacterial agent found among natural plants. Garlic has become an indispensable food in every household.” a health care doctor said. Recently, garlic prices on the market have risen, but market sales volume has not seen a significant decline, and most consumers still buy garlic according to their daily needs.
Recently, garlic prices on the market have risen. Industry insiders said that the main reason for this garlic price increase is that, with demand supporting the market, storage traders in the producing areas concentrated on holding back sales to prop up the market, thereby causing a reduction in the supply of goods and making it difficult for buyers to purchase. Although garlic prices have risen, market sales volume has not seen a significant decline, and most consumers still buy garlic according to their daily needs.
Reduced Supply Drives Prices Up
Recently, a reporter learned at several large agricultural products wholesale markets in Beijing that garlic prices have gone up. At the Beijing Xinfadi Agricultural Products Wholesale Market, the reporter saw that the lowest wholesale price of garlic was 3.9 yuan/jin, the highest wholesale price was 4.5 yuan/jin, and the middle wholesale price was 4.2 yuan/jin. “Recently, garlic wholesale prices have started to rise, but the volume of goods moving is still stable.” a vegetable wholesaler at the Beijing Xinfadi Agricultural Products Wholesale Market said. The reporter then went to several large supermarkets in Beijing and found that garlic prices had risen. “Recently, the price of garlic has risen quite noticeably, and at the same time, the prices of tomatoes and onions have also risen considerably.” a salesperson at a large supermarket in Chaoyang District, Beijing said.
Not only have garlic prices risen in physical stores, but garlic on major online shopping platforms also has no discounted prices. On the Tmall website, the reporter saw that Yuewang brand pollution-free fresh garlic from Rucheng, Hunan, in a 150g pack was priced at 4.8 yuan; Shandong Jinxiang garlic bulbs in a 200g pack were priced at 4.9 yuan; and Hongyu brand garlic in a 500g pack was priced at 9.3 yuan. “At present, the garlic in our online store has no discounted price, while other agricultural products such as cabbage and eggplant do have discounts.” the owner of an agricultural products online store said.
Zhuochuang Information analyst Cui Xiaona said that recently, after heavy snow in the producing areas, cold storage garlic prices have continued to rise. Recently, garlic prices hit a new high since 2012, with the purchase price of ordinary mixed-grade garlic in the Jinxiang producing area climbing to 3.9 yuan/jin, 69.57% higher than the lowest price of about 2.3 yuan/jin during this year's storage period, and 105.26% higher than the price of about 1.9 yuan/jin in the same period last year. The retail price of garlic in terminal market supermarkets is more than double the retail price of eggs at about 4.0 yuan/jin, and “Suan Ni Hen” has returned to the market. The main reason for this garlic price increase is that, with demand supporting the market, storage traders in the producing areas concentrated on holding back sales to prop up the market, thereby causing a reduction in the supply of goods and making it difficult for buyers to purchase. Among these factors is some human speculation participating in the market; the reduction in inventory compared with the same period last year and the rain and snow weather in November, which caused severe freezing damage to garlic seedlings in some areas and formed an expectation of reduced garlic production next year, are strong supporting points for speculative traders to enter the market. It is expected that the short-term garlic market will remain at a high level, and adjustments in cold storage garlic prices will still depend on the influence of supply and demand.
Market Sales Volume Remains Stable
Although garlic prices have risen somewhat, market sales volume has remained stable, and consumers have not deliberately reduced the amount of garlic they buy because of the price increase. “These past few days when I went to the supermarket to buy vegetables, I found that garlic prices had risen. I am really worried that garlic prices will keep rising higher in the future. At present, garlic prices are still affordable, so I have not reduced the amount of garlic I purchase and still choose garlic according to my usual buying habits.” consumer Ms. Gao said.