Since the end of last year, in Shandong, one of the main garlic producing areas in China, the retail garlic price has increased by more than 4 times year-on-year, reaching about 9 yuan per kilogram. In Henan, another major producing area, the price of garlic even rose 1 times year-on-year. At the same time, in big cities such as Beijing, the price of garlic in some supermarkets is as high as 2 yuan per kilogram, and the price of garlic that is more expensive than pork has become the focus of social attention for a while.
there is a saying that there are hundreds of millions of dollars lurking in the agricultural product market, speculating some agricultural products including garlic. However, the statement that this round of garlic price increase is speculated by hot money has not been officially recognized. On May 17, Yao Jian, spokesman of the Ministry of Commerce, said that from the perspective of the international market of agricultural products, there has always been a phenomenon that large amounts of funds are involved in the agricultural product market. "As far as China is concerned, capital speculation is not the main factor in the price increase of agricultural products."
Prior to this, on May 8th, Jinxiang County, Shandong Province, the largest garlic production and trading place in China, held the "jinxiang garlic Green Products Matchmaking Meeting" in Beijing Xinfadi Wholesale Market, and officially launched the "Green Garlic Jinglu Through Train".
Jinxiang, Shandong Province was accused of being the source of this garlic price surge, but Zhang Shengming, secretary of the county party committee of Jinxiang County, Shandong Province, told China Economic Weekly that there was a shortage of supply behind this garlic price fluctuation.
Due to the shortage of supply
Before garlic was so heated by public opinion, few people knew that among the garlic growing countries in the world, China ranked first with about 7, hectares, and its output also accounted for more than 7% of the world.
"Due to the low price in 27 and 28, the planting area, unit output and total output of garlic in China fell for the first time in 29, with an overall decrease of about 3%." Ni Yuanying, a professor at China Agricultural University, told China Economic Weekly.
according to statistics, in 27, the autumn sowing area of hybrid garlic in China was 4.5 million mu, while in 28, the hybrid garlic was only 2.8 million mu. The decrease of planting area and the decline of unit yield caused by weather caused a sharp drop in the total garlic output.
"Take Jinxiang, the hometown of garlic in China, which accounts for a quarter of the country's garlic production and more than 7% of the country's export, as an example. The annual inventory of used garlic is about 4, tons, but this year it is only about 1, tons." Zhang Shengming told China Economic Weekly, "At the same time, in the first quarter of this year, we exported 57, tons of garlic, up 1% from the same period last year, accounting for 7% of the garlic currently circulating in Jinxiang."
Zhang Shengming said that in addition to the sharp decrease in planting area and the shortage of garlic supply in recent years, the sudden increase in export volume in recent years has made the already tense relationship between supply and demand of garlic worse.
For a long time, China's garlic exports accounted for about 9% of the world's garlic trade. Wang Rongjiang, vice president of China Vegetable Circulation Association, told reporters that according to the US Department of Agriculture, in 26, 73% of China garlic was sold to the US market.
Wang Rongjiang told China Economic Weekly that, in fact, compared with the price of garlic in the United States, which is about 2 yuan per catty, the current price of garlic in China is relatively reasonable.