China is the main threat in the garlic market
The latest Spanish garlic season has allowed the country to rank second in the international market,…The latest Spanish garlic season has allowed the country to rank second in the international market, displacing Argentina to third place. The South American country had been in second place for several years thanks to the production of garlic in the provinces of Mendoza and San Juan. "Historically, China has been the leading exporter of garlic and the one with the most influence on international prices. Spain has developed as a major supplier in recent years, but we don't see our Spanish colleagues as a threat, but rather as a complement to our production," states Guillermo San Martín, spokesperson of Asoc.A.Men (Association of Garlic Producers of Mendoza).
"We have the perception that Spain is a strategic partner for Argentina, because we market our produce in different periods. Right now, our goal is to effectively make the most of the 19,000 tonne share that we already have in the European Union and to ensure greater integration with the European production. By collaborating with Spain, we can strengthen our technical capabilities and develop joint strategic plans to defend our productions against dumping practices, commonly used by China. Together we can gain a foothold on more international markets and supply a premium quality product that differs from the Chinese one," continues San Martín.
This year, it is estimated that Argentina will have 9,500 hectares of garlic, 14% more than last year, which should result in a slight increase in the production capacity. "Most of the increase will correspond to red garlic, which is intended for the Brazilian market, which absorbs 85% of Argentina's production. This variety is mainly produced in the province of Mendoza, as the conditions of its crops and the low rainfall, together with the health of its ecosystem, make the area ideal for the production of high-quality garlic. Similarly, the highest concentration of soluble solids ensures a greater shelf life, making the use of chemicals or refrigeration unnecessary," he affirms.
It is worth noting that, in recent years, China has recorded an increase in its prices, and this season, initial reports predicted a decline in production volumes, which would have a positive effect on prices. But the latest statistics contradict this information. "Speculations about the Chinese market are a concern, because if it is true that Chinese garlic will hit the market with reduced prices, Argentina would have a restricted access to other markets. We firmly believe that the main threat in the garlic market is China, where the activity is heavily subsidised and dumping practices are common, which makes it easy for them to take a stand in any commercial court. In mid-July, we will have more accurate information on the situation," he concludes.