GLOBAL MARKET OVERVIEW GARLIC

Market conditions remain under pressure, however, as abundant supplies from major exporting origins, particularly China, continue to weigh on prices and trade flows. Import competition, high stock levels, changing trade policies, and shifting demand patterns are influencing market developments across Europe, the Americas, Africa, and Asia as the new harvests enter commercial channels.Spain: Strong yields face pressure from Chinese importsThe early garlic harvest is drawing to a close in Spain's main growing regions, with very positive agronomic results in terms of both yields and quality, although the commercial situation remains difficult due to pressure from Chinese supply. The traditional purple garlic harvest is set to begin shortly, and exceptional quality and bulb sizes are also expected. In 2026, Spain's garlic acreage increased by between 4% and 5% compared with 2025, according to figures from the Ministry of Agriculture, Fisheries and Food (MAPA), with early varieties gaining ground on traditional purple garlic due to the latter's lower profitability.Weather conditions have been favourable throughout the early garlic harvest, from its start in mid-May through to the current stage, when it is almost complete. "We have generally had sunny days with no rain, and that's reflected in the quality of the product; the best we've seen in the last three campaigns," a sector representative points out. Yields in 2026 are higher than last year, driven in particular by an overall increase in bulb sizes. Some fields experienced harvesting difficulties due to labour shortages, although this is becoming less of an issue thanks to continued investment in harvest mechanisation following the rise in the national minimum wage.Despite the high quality and large bulb sizes, the commercial situation for Spanish garlic remains challenging. Prices reached very high levels in the previous campaign, triggering a substantial influx of garlic from China and other suppliers, such as Egypt, at very low prices. Due to high stock levels, Chinese exporters have been selling garlic in Europe at prices well below Spanish production costs under European regulations. "Competing with that is impossible," says the representative of Spanish garlic growers and exporters. "In March we still had some production from the previous campaign in storage, which isn't normal at that time of year. We managed to clear the old stocks in May and are now continuing to harvest. At the moment we are seeing somewhat of a recovery in sales, and although there will continue to be heavy pressure from Chinese garlic, we will keep betting on the quality and food safety guaranteed by the European production."The first purple garlic harvests will start next week, and sufficient volumes for commercial sales should be available in the last week of June. "We are expecting a harvest with bulb sizes we haven't seen in years, as well as genuinely excellent quality," he says.Italy: Imports continue to weigh on the marketThe Italian garlic market is currently experiencing a challenging period. Prices remain low, and interest from buyers and consumers is limited due to the abundance of imported garlic. According to a grower-trader from southern Italy, although Italian consumers generally prefer domestically produced garlic, such as that grown in Campania, Rovigo, and Piacenza, as well as traditional varieties including 'Rosso di Sulmona' and 'Rosso di Nubia', local production is insufficient to meet market demand, making imports necessary. "Over the past few months, however, the market has been flooded with garlic, mainly from Egypt and Argentina, which is being sold at extremely low prices. Egyptian garlic, in particular, is being offered at less than €1 per kilogram. However, this product does not meet the preferences of Italian consumers due to the irregular shape of its cloves. Consequently, around 90% of the imported Egyptian garlic remains unsold in warehouses and wholesale produce markets.""The large volume of unsold product, combined with carryover stocks of Spanish garlic from the previous season, has significantly slowed trading activity. The outlook for the coming months is not encouraging. Consumption is estimated to be running two to three months behind normal levels, which is the time required to clear the substantial inventories currently weighing on the market. Until these stocks are absorbed by the market or deteriorate, it will be difficult to make room for the commercialization of the new domestic crop, which has already entered the harvesting, processing, and storage phase." If market conditions do not improve quickly, the sector could face further economic challenges. "In such a scenario, a reduction in national production may be necessary to prevent significant financial losses throughout the entire supply chain."The chairman of a major cooperative in northern Italy, which produces more than 300 tons of garlic annually, says the outlook for the 2026 harvest is positive. Harvesting is expected to begin around 20-22 June. Vegetative growth has been very vigorous, which bodes well for the crop. In recent weeks, the cooperative harvested an early variety known as 'spring garlic', which delivered good yields. "However, the Italian garlic sector is currently experiencing a period of crisis. Cultivation areas are declining due to the incidence of diseases such as Fusarium, reducing yields. It is also very difficult to find labour for harvesting and subsequent operations. Finally, climate change is often causing worrying drops in production."France: Earlier harvest under favourable conditionsThe 2026 French garlic campaign is getting underway under generally favourable conditions, with most producing regions reporting an earlier-than-usual harvest. Warm spring temperatures accelerated crop development, resulting in harvests starting one to two weeks ahead of the traditional schedule in several growing areas.Overall production is expected to be close to a normal year, with good sanitary quality and satisfactory yields across most regions. While some areas experienced uneven sizing due to heat stress, growers report healthy bulbs and favourable drying conditions. The French garlic sector remains confident about the availability of domestic supply for the coming season.However, market concerns persist. While household consumption remains stable and garlic continues to attract new consumers, the growing share of low-priced products is becoming a major issue for the sector. Industry representatives report that entry-level products now account for a significantly larger share of sales than in previous years, putting increasing pressure on prices throughout the supply chain.According to the French garlic industry, this trend risks undermining the value of domestic production at a time when growers face rising production costs and stringent regulatory requirements. Maintaining the long-term viability of French garlic production will therefore depend not only on consumer demand, but also on the sector's ability to secure fair returns for growers and the wider supply chain.Netherlands: Adequate supply keeps market calmAs is typical during the summer period, the garlic market is developing at a steady pace. Importers report that supplies are sufficient, while Spain appears to be entering the season with a healthy harvest and adequate availability. Last week, Dutch growers also started harvesting fresh garlic. "Forecasts indicate that tropical temperatures will return in the coming days, and that is not ideal for long-term storage of garlic. The garlic being harvested now looks good, but if the weather forecasts are correct, that could change quickly," according to one grower.At the same time, according to importers, the market remains sensitive to developments in production, logistics, and costs. International market conditions also continue to play an important role. Garlic prices are currently at a low level.However, prices for peeled garlic are now rising sharply. According to market participants, this is because that segment has performed poorly in recent periods.Germany: Market awaits stronger demandSpanish producers report a very good harvest in terms of quality, with bulb sizes also described as satisfactory. At the same time, a German importer notes that there is still a considerable volume of older garlic on the market, which is putting downward pressure on prices. Meanwhile, the Spanish garlic industry needs a strong marketing year to help offset losses incurred in previous seasons.In China, heavy rains occurred at an unfavourable stage of the season, contributing to a higher incidence of mold spots. In practice, this means more intensive peeling and sorting is required to obtain clean bulbs and meet European quality standards. This additional work is already reflected in price increases of around €170/t. In addition, the import licence quota allocated per importer has recently been very low. This could play into the hands of Spanish suppliers, allowing them to maintain their prices. "In terms of demand, however, we still see room for growth," the report continues.North America: Weak demand despite ample suppliesThere is a good supply of garlic on the market, although yields have varied across the main growing regions. Mexico has been shipping garlic for more than a month. While planted acreage was extensive, overall yields have been disappointing. This has been attributed to seed quality issues and the lack of a cold snap when the garlic was first planted.While supplies of Chinese garlic remain ample, the anticipated shortage in Mexico was expected to have a significant impact on the market. However, Spain is now emerging, unexpectedly given its performance over the past two seasons, with very good yields.Other exporting regions include Egypt and Turkey, although volumes remain below those seen from the major producing regions. Domestically, California is also beginning its harvest, with yields expected to be similar to those of last season.Demand remains weak, with customers purchasing only what they need. While this is typically a period of softer demand due to schools closing for the summer and the holiday travel season getting underway, high fuel prices in the U.S. are also affecting market movement.South Africa: High volumes keep prices below last year"We saw record volumes on the market over the past three months," notes AMT market analyst in its weekly market overview. "Thus keeping prices almost 40% lower than a year ago. Lower profit levels this year can discourage plantings next year and result in a higher-price season again, something to look out for."Market traders consulted indicate that garlic prices are broadly similar to last year. At the Durban municipal market, which is closest to the entry point for large volumes of garlic imported from China, Spain, and Thailand, prices currently range from €2.90 to €3.50 per kilogram, according to a market agent. "We shift huge volumes of garlic on the Durban market. We've received the final load of the local crop, coming in from the Free State. Garlic growers in Limpopo will re-enter the market by around October or November."According to AMT, the average price for imported garlic is €3.35/kg, while local garlic averages €2.66/kg. At the Tshwane market, garlic sells for between €3.20 and €4.50/kg, depending on quality and size. Retailers drive demand for the large cloves of imported garlic, which are available year-round, and imported garlic is often priced considerably higher than South African garlic, which typically has a greater number of smaller cloves. However, a garlic trader notes that many South Africans seek out locally grown garlic for its "much stronger" flavour.Garlic demand typically increases during the three winter months. "Garlic demand feels stable. It has been quiet in general on the market over the last couple of weeks, but it feels like garlic is moving about the same as usual," remarks a trader.Egypt: Export demand slowsThe Egyptian garlic season began with growers expanding production following previous seasons. One grower said: "The acreage has increased much more this year than last year." Following a strong 2024/25 campaign that opened new markets, Egyptian farmers converted additional land to garlic production. Egyptian garlic exports to the EU nearly doubled in 2025 to 19,555 tons, making Egypt the bloc's second-largest supplier after China. Spanish growers, facing declining market share despite a forecast 40-50% production increase in Córdoba, called on Brussels to review trade terms and strengthen customs controls.The larger crop in Egypt this season entered a market already supplied by garlic from other origins, including China, as well as carryover stocks from the previous season. Demand for Egyptian garlic remained present in Europe in 2026, but supply pressure weighed on prices. Exporters described a market that was active across three continents, with one exporter noting that "most Egyptian garlic suppliers are fully booked." Despite this, prices remained below last season's levels.By April 2026, a supply shortage in Brazil generated a new wave of orders. By June, many exporters described a market supported largely by Brazilian demand, while European demand slowed due to remaining Spanish cold-storage stocks and garlic from competing origins. One exporter said, "Prices currently stand at €1,125 per tonne CIF Santos for small sizes, 60% below the previous season's levels, even with Brazilian orders still flowing."As the season approached its end, demand from Brazil also began to ease. One exporter said, "Demand remained present but is weaker than last year, and would likely fade further as new Spanish and Chinese harvests enter the market." He added that Egypt's main constraint was not acreage, as only 15-20% of national output is exported, but rather the industry's ability to balance growing production with export demand. The season is expected to conclude in late July, with only limited volumes remaining through October.China: Exports focus on Africa as prices easeThe peak garlic harvest season began in early May. Overall garlic quality is acceptable this year, with a higher proportion of large-sized bulbs. Prices for garlic in the 4.5-5.0 cm size grade are expected to be slightly higher than during the same period last year, remaining relatively attractive to exporters.Harvesting of early varieties is now largely complete, and mid-season varieties account for the bulk of current market supply. The newly harvested garlic is being dried to ensure quality for export and long-distance transportation.Although overall market demand remains stable, prices have declined compared to the same period last year. For some repeat customers, quotations for 5.5 cm grade garlic are in the range of €793-€818, significantly lower than normal levels in previous years. Intense competition and global economic uncertainty have squeezed exporters' profit margins, making returns less attractive than before.On the international market, demand from Africa continues to grow and has become a key export focus. Exporters began paying attention to the African market many years ago, but as competition has intensified, more companies have entered the market as a new growth opportunity.Freight rates remain volatile and continue to change on a weekly basis. Overall, rates are at a moderate level and have eased somewhat compared to earlier peaks, but uncertainty persists. Exporters need to plan shipment schedules carefully and monitor shipping trends closely to mitigate cost risks.Peru: Production falls on heat impactThe 2026 season faces a double challenge: climate anomalies and pressure from Chinese garlic. Unusually high temperatures prevented the accumulation of the chilling hours required for the crop, affecting quality from the first harvests in Arequipa. National production could fall from its usual 100,000 tons to between 60,000 and 70,000 tons.Export prices could recover due to lower supply, although the informal presence of Chinese garlic, priced at around €780 per ton, is limiting that recovery. Mexico accounts for 70% of Peruvian garlic exports and is also experiencing similar climate-related damage.Argentina: Chinese competition disrupts key export marketThe 2024/25 season recorded confirmed losses, mainly due to the impact of Chinese garlic in Brazil, which receives 70% of Argentine garlic exports. Since October 2024, Brazil has modified its antidumping mechanism, allowing Chinese garlic to enter the market at prices below €15 per unit.The excess supply redirected Argentine garlic to the United States and Spain, putting downward pressure on those markets as well. The new season begins with encouraging signs, including improved seed selection and earlier planting.Brazil: Antidumping changes reshape garlic marketAs the main market for Argentine garlic, absorbing 70% of its exports, Brazil became the centre of the season's market disruption. The modification of the antidumping duty calculation mechanism on Chinese garlic, in force since October 2024, allowed substantial volumes to enter at low prices through four authorised companies, as well as via third countries and court injunctions.The impact was felt across the Argentine export chain. Producers in Argentina and Brazil, together with both governments, are working to prevent a similar situation from occurring again.Chile: Lower prices and reduced planting intentionsThe season ended with price declines of 50% to 80% compared with the previous year. The main destination market, Mexico, faced simultaneous saturation from stored domestic Mexican garlic, small-sized Peruvian garlic, and smuggled Chinese garlic.Chinese garlic is entering South American ports at around €865 per ton CIF, a level local producers cannot match given rising production costs. Fuel prices increased by 60% and fertiliser prices by 80%.In response, the industry is focusing on quality differentiation and genetic improvement of planting material. Planting intentions for the next season are estimated to have decreased by 20% to 30%.Mexico: Market pressured by multiple supply sourcesAs the leading destination for Chilean and Peruvian garlic, Mexico experienced unusual market pressure during the 2024/25 season. Domestic garlic held in cold storage, small-sized Peruvian garlic, smuggled Chinese garlic entering through Guatemala, and additional supply from Chile and Argentina all contributed to downward pressure on prices.In addition, Mexican garlic harvests were affected by excessive heat this season, reducing domestic production. The market remains strategically important for South American exporters, although illegal competition from Chinese garlic continues to be a structural challenge.Next Topic: ApplesPublication date: Fri 19 Jun 2026© FreshPlaza.com / Stefan Jansen van Nieuwenhuizen