Garlic price roller coaster garlic farmers are busy in one year, part of the garlic merchants lose money

category:Finance
 Garlic price roller coaster garlic farmers are busy in one year, part of the garlic merchants lose money


Jinxiang is one of the main garlic producing areas in China. It is known as garlic in the world looks at China, garlic in China looks at Jinxiang. It is the wind vane leading the price trend of garlic in China. In Jinxiang, every garlic farmer has a cost account in mind. In detail, this years garlic dish is very difficult to play, because the purchase price is too low.

Wuzhen, a villager in Duhe village, Jimi Town, planted six mu of garlic. After the garlic harvest in May, he left 3000 Jin for garlic planting, and sold the rest about 10000 Jin.

This year, the yield per mu is about 2000 Jin, the purchase price per Jin is about 1.5 yuan, and the income per mu is about 3000 yuan. Wu Zhen then calculated the cost for the reporter: an acre of land needs more than 400 Jin of garlic, which is nearly 2000 yuan according to last years price, plus 600 yuan of chemical fertilizer, 300 yuan of pesticide, irrigation, mulch, etc., which is 3000 yuan.

Last year, the price of garlic was high, so the cost of garlic seed was much higher than that of other years. Wu Zhen said that this is not labor cost. He does everything from planting to collecting. If he hires people for one mu of land, he will have more than 1000 yuan.

Last years purchase price was more than 4 yuan per Jin, and there were several thousand yuan of profits in addition to the cost of one mu of land. Liu Yun, a woman in nanchenlou village, mamiao Town, a trade company in Jinxiang garlic international trading market, is cutting the garlic pole skillfully, sighing to the reporter, this year, she only sold it to 1.2 yuan a catty, but she didnt earn any money and lost a lot of money, so she came here to do odd jobs and make up for it.

Compared with garlic farmers, the first to suffer from the impact of garlic price drop and the loss is more serious is a part of garlic storage business, which is often called garlic business. Zhang Hongbo, Secretary General of garlic industry information association of Jinxiang County, said that may is the time for new garlic to go on the market every year, and the common people dont know whether they are making money or losing money until this time. Before that, from September of the previous year to April of the next year, all the garlic sold were stored in cold storage.

Zhang Hongbo said that last years market was good. Many novice depositors felt profitable. They entered the market blindly without analyzing the supply-demand relationship behind them. They invested a few million yuan less, tens of millions more, and bought them at a price of more than 4 yuan per Jin and then stored them in the cold storage. At that time, because the garlic price was at a high level and the amount of capital needed was large, they borrowed from financial institutions or cold storage parties. As a result, I didnt expect that the price had been falling all the time. I didnt give them a chance to make profits. I even lost my capital.

By May of this year, new garlic was listed in a centralized way, and the transaction price plummeted. Relevant monitoring data show that the lowest price was 0.85 yuan / jin at the end of May, and it is currently maintained at 1.3 yuan / Jin. When the price of garlic falls below half of their cost price, the matching party also loses money, which leads to the phenomenon of short position. Zhang Hongbo said.

The influence of blind expansion and epidemic situation on garlic prices

According to the reporter, the price of garlic is determined by the market supply and demand. This year, the price is cheap. The main reason is the imbalance between supply and demand caused by the blind expansion of the common people.

Zhang Hongbo said that the increase and decrease of planting area directly affects the trend of garlic price. The reason why garlic prices were high last year was that the low price of garlic the year before last led to the abandonment of garlic by farmers, and the planting area was greatly reduced. Seeing that the price of garlic rose last year and the enthusiasm of the common people for planting was also high, the planting area has increased a lot this year.

The data of Jinxiang garlic international trading market confirmed this statement: in 2018, the garlic planting area in China was 8.29 million mu, reduced to 5.982 million mu in 2019, and increased to 7.3306 million mu in 2020.

And this year is a good harvest year. Growers generally increase production and the total supply goes up, but the market demand is relatively fixed and the price is bound to fall. Zhang Hongbo said, after all, garlic is just the condiment on the table of the common people. If the price is too high, you can buy less. If the price is too low, you wont buy more. Its the growers who suffer the loss.

According to the analysis of the development and Reform Bureau of Jinxiang County, in the early stage of the outbreak, the domestic transportation of garlic was not smooth in the past two months, the export processing was difficult, and the market demand fell sharply, which led to the relatively large overall stock of garlic, the oversupply and the low price when the new garlic was listed.

The irrational investment of some garlic merchants is also an important factor affecting garlic price in the short term. Zou Huiming, who has been engaged in garlic collection and storage business in Jinxiang for many years, avoided the price slump this year. After analyzing the market fundamentals, he found the risk of price decline and left the market. There are short-term speculations in the market, but most of them are business people. Its not a good thing that the price of garlic goes up and down. I hope the government can guide the planting scientifically, regulate the order of garlic trading market, and create a healthy market environment. He said.

Scientific guidance to stabilize garlic dish

After more than 40 years of development, garlic in Jinxiang has been stable around 600000 mu all year round, and will not increase or decrease significantly with the fluctuation of garlic price. Local officials said that if other major production areas can also stabilize the planting area and guide farmers to grow reasonably, then the whole garlic dish will be stable, and the garlic price fluctuation will be difficult to capricious.

Song Xianglei, deputy director of the development and Reform Bureau of Jinxiang County, said that from 2015 to 2019, a total of 448 million yuan was paid to farmers. This years premium is 126 yuan / mu, 60% of which is subsidized by the government, and only 50.4 yuan will be paid by garlic farmers for one mu. This year, the county has insured more than 400000 mu, accounting for nearly 70%.

Im not afraid to have garlic price insurance. If the price is not enough, people will compensate us. Wu Zhen said that the probability of compensation in this market is relatively large this year. In 2018, the garlic price is still lower than this year, and 882.4 yuan will be paid for one mu of land.

In addition, although farmers in Jinxiang grow garlic all the year round, planting garlic has not been the only economic source. The government departments guide them to integrate into various links of garlic industry chain, such as planting, storage, processing, and sales, so as to give birth to the three habitat operators who are also agricultural, industrial and commercial.

Garlic farmers in Jinxiang no longer have the theory of farming leisure. They turn around garlic all the year round. Even if they lose money, there are other ways to increase their income. My daughter-in-law and I work in the garlic processing factory or refrigerator nearby, and each of us can earn about 200 yuan a day. There is little overall impact on the compensation point and earning point of planting garlic. Wuzhen said. Garlic price is connected with supply end and consumption end. Industry insiders believe that to control the huge fluctuation of garlic price, we should not only stabilize garlic planting area, but also make efforts to expand garlic demand. Jinxiang hongwannian Food Co., Ltd. focuses on the deep processing of garlic. At present, it has formed four categories of products, among which the main black garlic has a high added value. The price of a black garlic is more than a jin of fresh garlic. Zhang Benchi, assistant general manager of the company, said that by lengthening the garlic industry chain and encouraging the development of deep processing of garlic, not only the consumption of garlic is increased, but also the added value of garlic is increased. As the price of garlic products goes up, the purchase price rises naturally, and the interests of growers are guaranteed. Source: surging news editor: Yang Bin_ NF4368

Garlic farmers in Jinxiang no longer have the theory of farming leisure. They turn around garlic all the year round. Even if they lose money, there are other ways to increase their income. My daughter-in-law and I work in the garlic processing factory or refrigerator nearby, and each of us can earn about 200 yuan a day. There is little overall impact on the compensation point and earning point of planting garlic. Wuzhen said.

Garlic price is connected with supply end and consumption end. Industry insiders believe that to control the huge fluctuation of garlic price, we should not only stabilize garlic planting area, but also make efforts to expand garlic demand.

Jinxiang hongwannian Food Co., Ltd. focuses on the deep processing of garlic. At present, it has formed four categories of products, among which the main black garlic has a high added value. The price of a black garlic is more than a jin of fresh garlic. Zhang Benchi, assistant general manager of the company, said that by lengthening the garlic industry chain and encouraging the development of deep processing of garlic, not only the consumption of garlic is increased, but also the added value of garlic is increased. As the price of garlic products goes up, the purchase price rises naturally, and the interests of growers are guaranteed.