Garlic

USA
Processors began harvest at the outset of July and are now complete with the last fields
finishing in mid October. Both tonnage and solid content of the 2016 crop were
disappointing, with overall tonnage 15%-20% below historical averages and expectation.
Poor quality of water and limited availability due to drought continue to be a significant
factor in the recent underperformance of California garlic crop. Availability for garlic will be
severely restricted and inventory carries will remain very low going into the 2017 season.
China
The outlook for the garlic market in 2017 is dim. Sales of garlic for cold storage have run
into difficulties, and transactions between the production plants and the marketplace have
not improved over the years; and supply exceeds demand. The price for garlic is currently
in steep decline. Given the decline in garlic exports, the expansion of garlic plantations and
the difficulty in placing the current garlic reserves (and many other elements) there is a
possibility that the prices will still continue to fall in the coming period.