The new Chinese garlic harvest will soon be arriving on the European market. "According to the latest information, yields are around 15 to 20 percent above last year's level and the quality is also said to be consistently good," reports Heinz Düpmann, vegetable processor and managing director of the company of the same name based in Borgholzhausen, Germany. In line with the supply situation, prices are currently below last year's level, although the price range for industrial goods in particular has stabilized recently, he added.
With a share of around two-thirds of the global market, China remains the leading garlic producer and exporter. In addition to Europe, neighboring Asian countries and the US are also important export markets for the Chinese garlic sector, according to Düpmann, who recently visited the Chinese garlic stronghold of Shandong on a business trip. "Despite uncertainty and the suspension of tariff negotiations in the US until July 9, large quantities are already being exported to the US. In general, China has developed very strongly, and it is clear that a lot is being invested in quality management and infrastructure. Another important development is that the produce is increasingly being stored centrally in one place rather than at the producer's premises, which in turn benefits product quality."
Experience shows that the garlic market only really starts to move at the beginning of the second half of the season. The first estimates of the new harvest are usually available after the Chinese New Year at the beginning of March. "After that, there is generally a little more pressure on the market. Even though we currently have encouraging supply volumes available, this will not necessarily lead to further price reductions in the coming period," outlines Düpmann. Another important factor is the sea freight situation: "Although this has normalized recently, we are still in a trade war, and it is currently impossible to predict how the shipping companies will behave." The company mainly uses Chinese frozen garlic for industrial purposes. Additional quantities are sourced from Spain and Italy.
Decisive phase for seed onion harvest
Vegetable onions are also one of the main products processed by Düpmann GmbH & Co. KG. Here, too, the new harvest is now gradually coming onto the market. Düpmann: "New onions from Spain are already available, with prices falling slightly recently. Poland is now also starting its winter onion harvest. However, major movements in the market are not expected until July, when the winter onion harvest begins in the Netherlands and Germany." The next four weeks will be decisive for the seed onion harvest, which gets underway in mid-September. "The growth of seed onions weakens very quickly, despite irrigation. This means that during prolonged heat waves with temperatures around 30-35 degrees, the situation can become critical."
In recent months, the procurement situation for onions has been extremely difficult, Düpmann continues. "Starting in February, there was an unusual price increase in the Netherlands. Poland and Germany also had relatively poor harvests, and Spain was unable to make up for the shortfall completely." To date, he has mainly been relying on domestic contract goods.
Heinz Düpmann with his two sons and wife Sylvia
Mediterranean products are trending
The Düpmann company has been dedicated to onion peeling for 55 years. Today, the family-owned company offers its customers in the catering and retail sectors a wide range of around 500 products. "In recent years, we have seen a growing demand for Mediterranean products, including dried tomatoes, peppers, and olives. However, the variety of our vegetable preparations—such as cucumbers, carrots, and peppers in all varieties and cuts—continues to increase," he concludes.
For more information:
Heinz Düpmann
Düpmann GmbH & Co KG
Am Teuto 18
33829 Borgholzhausen
Telephone: +49 54 25 / 9 32 46 21 00
Fax: +49 54 25 / 9 32 46 21 40
E-mail: [email protected]
Web: www.duepmann.de