Garlic prices slump as wholesalers collude to drive prices down; government treats symptoms, not the root cause

This year, because of cold, cool weather, garlic yield per unit area was 20% higher than in previous years, and with import quotas added, the total exceeded domestic demand by 8,000 metric tons. The average purchase price at producing areas in Yunlin fell to 12 yuan per jin, only half of the cost, leaving garlic farmers with nothing but losses. The government sought a way out through export subsidies and hypermarket promotions; but many farmers and farmers' associations said that although cultivated area and yield per unit area both increased, the price should not have fallen so dramatically, and that wholesalers agreeing to jointly drive prices down is the main cause of the garlic price slump.

Coincidentally, in 2011 garlic also had a bumper harvest because of cold, cool weather, and the price at that time was also 12 yuan per jin. The response measures of the Council of Agriculture and the county government were exactly the same as this year, treating symptoms but not the root cause. The farmers' associations that should have been looking after farmers, under pressure from their boards of directors, were also afraid of losses and did not dare to purchase and market the crop. The Cihtong Farmers' Association was one of the few farmer groups to launch garlic products and processed goods. Director-General Chang Yu-hsuan believes that to solve the sharp fluctuations in garlic prices, it is necessary to establish a transparent and open auction mechanism, promote contract farming between farmers and farmers' associations, and require no pesticide residue, using high quality to open up production and marketing channels.

Higher volume plus imports: garlic price falls to less than 10 yuan per jin

Garlic is the best supporting player on the dining table. According to statistics from the Council of Agriculture, Taiwan eats 53,000 metric tons of garlic each year, equivalent to about 5,000 hectares of cultivated area, more than 80% of which is concentrated in Yunlin. Every year from October to around 10 days before or after Qingming Festival the following year, the cool, cold northeast monsoon nurtures garlic to maturity with low temperatures of 20 degrees. When the south wind arrives, garlic stops growing, and farmers can happily dig up the garlic to "reveal the prize."

This year the weather was cold and cool, the garlic was plump and large, and yield per unit area rose sharply by 20%. In addition, because the previous season's poor weather led to low volume and good prices, farmers' willingness to plant increased greatly. This year the area reached 5,179 hectares, and total output reached more than 58,000 metric tons. Adding the tariff quota of 3,520 metric tons, supply exceeded demand by 8,000 metric tons. The purchase price of garlic (dry garlic) from large wholesalers at producing areas fell to 12 yuan per jin, and even an ultra-low price of 7 yuan appeared, making farmers cry out that they could not survive.

Chen Jui-yu, a garlic farmer from Kouhu Township in Yunlin, said helplessly that in fact the yield had not changed much. The cost of garlic is about 25 yuan per jin, and last year the purchase price was still more than 30 yuan. This year, no matter how it is sold, it is a loss. Although garlic can be dried and stored, at most it will sprout and lose flavor by the 10th lunar month (November on the Gregorian calendar), and without professional warehouses, they can only sell however much the buyers offer. "But no matter what, we still have to plant. It is impossible to wait for a good price before planting. It is very sad to say, but we can still only plant."

Lin Chun-fu, chairman of the Taiwan Garlic Farmers Association, said that the cost of garlic is relatively high, at 30,000 yuan per fen. Many farmers borrow money to buy garlic seedlings. Even if it can be dried, the longer it is stored, the greater the risk. Seeing so much garlic in their hands, farmers who are eager to sell can only do as the wholesalers say.

Wholesalers monopolize prices and only enter the market at low prices