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Chinese garlic floods market pushing prices down

Chinese garlic floods market pushing prices down

 

Chinese garlic prices have fallen as produce arrives on the market at the same time from warehouses and other sources. 51garlic.com reports that the price of garlic from warehouses was hit hardest and dropped significantly. Large garlic sellers gave in and slightly lowered their asking price. Visiting traders who purchase garlic from warehouses mainly work for online shops and the factories that produce processed garlic for the export market. As a result the garlic market is not very active. Buyers are hesitant and the trade volume is small.

In Jinxiang, market conditions are not ideal for garlic from sources other than warehouses. That is why the trade in garlic from warehouses picked up. The market paid less attention to garlic from sources other than warehouses. The supply volume of garlic seeds and garlic shoots is growing. Visiting traders are buying, but traders with stock in storage are not eager to sell at low prices. Supply speed is moderate and the price of garlic from sources other than warehouses is mostly stable.

The trade in garlic from warehouses in Jinxiang has recently expanded. Large-scale traders who previously stocked their warehouses with low-priced garlic are willing to sell their garlic. They are selling in small volumes. And the reserves in warehouses are still abundant. Garlic processing factories are entering the market too, but competition puts pressure on the price. Most of the garlic is old garlic from warehouses and the price is relatively low.

 

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Drop in EU imports of Chinese garlic

Drop in EU imports of Chinese garlic

Europe continues to diversify its sources of garlic, meaning that China’s garlic exports to the EU continue to fall. Between 2017 and 2018, shipments to the EU fell by 27.5%, from 45,703 tons to 36,021 tons. This figure hides a deeper truth: between 2016 and 2018, the greatest fall in Chinese garlic exports was for shipments to the Netherlands (by far the largest market for Chinese garlic). Shipments to the UK and France (the next two largest markets actually increased between 2017 and 2018.

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Smoked garlic a sticking point for Codex garlic standard

The US has argued that smoked garlic is a processed commodity and should not be included in the fresh garlic standard being developed within the framework of the Codex Committee on Processed Fruits and Vegetables (CCPFV).

Smoked garlic is a processed commodity and should not be included in the fresh garlic standard being developed within the framework of the Codex Committee on Processed Fruits and Vegetables (CCPFV). That was the position taken by the US at the committee’s 19th Session, held October 5-9 in Mexico.

A report on the meeting published by the USDA says that during discussion on the proposed draft standard for garlic, most issues were resolved except for the inclusion of “smoked” dried garlic. “Some delegations supported the U.S. position in expressing concern that certain smoking practices may alter the taste and/or appearance of this raw agricultural commodity,” the US delegate said in the report.

“The United States is on record for expressing concerns that smoked garlic may be outside the scope of the CODEX CCFFV terms of reference, which clearly state: ‘to elaborate standards for fresh fruits and vegetables.’ Since smoked garlic should be considered ‘processed,’ it should be referred to the Codex Committee on Processed Fruits and Vegetables (CCPFV) for further discussion.”

In regard to other issues discussed at the meeting, the delegate reported the following:

Proposed Draft Standard for Kiwifruit: The Committee discussed the draft standard and agreed to exclude Actinidia species such as the A. arguta (kiwiberry) from the standard. The standard was aligned with the approved sections of the revised CCFFV standard layout. There was lack of consensus on size-based classes; i.e. the inclusion of different minimum sizes (diameters) per class along with the minimum maturity requirements. The draft standard was advanced to Step 5 for continued elaboration.

​Actinidia-arguta, commonly called kiwiberries

Proposed Draft Standard for Ware Potatoes: Differing view/positions on several provisions of this proposed draft standard such as sprouting, green coloration, presence of rot and allowance for the presence of soil were not resolved at this session. Therefore the CCFFV agreed to return the proposed draft standard to a working group, led by India, at Step 3 for further revision and consideration at its next session.

Proposals for New Work: The Committee considered proposals for the elaboration of new Codex Standards for fresh dates (India), shallots (Indonesia) and yams (Costa Rica). The proposal from India was approved as new work by the CCFFV, subject to CAC approval, while those from Indonesia and Costa Rica were returned for redrafting and submission at the 20th CCFFV session.

Proposed Draft Standard for Aubergines/Eggplant: The Committee made changes to this draft standard based on the product’s characteristics and trade practices to harmonize with an international interpretation. The Committee agreed to forward the draft standard to the 39th Session of the Codex Alimentarius Commission (CAC) in June 2016 for adoption at Step 5/8. The U.S. delegation was instrumental in ensuring that this standard harmonized with the revised CCFFV Standard Layout to better reflect global trade and regulatory practices.

The full report, including discussion of the Proposed Revised Layout for Codex Fresh Fruits and Vegetables Standards, can be read online at: http://www.fsis.usda.gov/wps/portal/fsis/topics/international-affairs/us-codex-alimentarius/recent-delegation-reports/2015/delegate-report-19-ccffv

The 20th CCFFV Session is tentatively scheduled in 18 months.

Read other reports by Eurofresh Distribution on the Codex Committee on Processed Fruits and Vegetables (CCPFV) here.

Image sources:

  • Smoked garlic: by Jeremy Keith from Brighton & Hove, United Kingdom (Smoked garlic  Uploaded by Fæ) [CC BY 2.0 (http://creativecommons.org/licenses/by/2.0)], via
    CommonsWikimedia
  • “Actinidia-arguta”: by Hiperpinguino – Own work. Licensed under CC BY-SA 3.0 via Commons
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Standards for kiwifruit, ware potatoes, garlic and aubergines on agenda for Codex meeting next month

Draft standards for aubergines, garlic, kiwifruit and ware potatoes are on the agenda at the 19th session of the Codex Committee on Fresh Fruits and Vegetables in Guerrero, Mexico, October 5–9.

Draft standards for aubergines, garlic, kiwifruit and ware potatoes are on the agenda at the 19th session of the Codex Committee on Fresh Fruits and Vegetables in Guerrero, Mexico, October 5–9.

And a Codex standard for shallots is also up for discussion at the meeting. That standard has been proposed by Indonesia, which says that, based on FAO data, world production on shallots and onions increased 2.7% per year over 1980-2011.

Read more about the Codex Committee on Fresh Fruits and Vegetables in our article on its 18th session, held in Thailand in February last year.

image source: “Proposals for new work on fresh fruits and vegetables