State of garlic industry discussed at industry breakfast
State of garlic industry discussed at industry breakfast
HOUSTON -- After listening to several less-than-glowing accounts regarding competition from Chinese producers, Don Christopher of Gilroy, CA-based Christopher Ranch weighed in with a viewpoint that brought a lift to everyone assembled at the garlic industry's Oct. 13 breakfast at the PMA Fresh Summit.
"About five years ago, we lost the battle with Chinese garlic," Mr. Christopher said. "Now the Chinese hit themselves in the foot. It's not costing us anything. The whole market looks good for this year and next year."
Mr. Christopher told the audience -- many of whom were members of the Christopher Ranch team from around the nation -- that his salespeople are doing "a great job."
Last year, for the first time ,the United States bought more garlic from China than from California. China now has a dominant market share in the United States. But the food-safety scare several months ago that began with unsafe substances added to pet food from China brought on tighter food-safety standards imposed by the Chinese government that have curtailed that country's garlic exports.
Chinese garlic has become popular in part because it wholesales in the United States for about half the price of California-grown garlic.
Sal Vacca of A.J. Trucco opened the breakfast discussion by saying that the industry had been "forced to go into Chinese garlic."
Paul Auerbach of South Hackensack, NJ-based Maurice A. Auerbach Inc. said that a lot of business has been lost on the wholesale side and that the wholesale business "has changed tremendously over the last few years." He said that high-end, white tablecloth restaurants opt for California garlic.
Joe Lane of The Garlic Company in Bakersfield, CA, said that there are "still a lot of people who prefer cheaper garlic based on price."
Jeff Stokes of Christopher Ranch said that restaurants look at the bottom line when they are buying peeled garlic, but in bulk, customers are "switching away from Chinese [garlic]."
Doug Urbach of Christopher Ranch's Los Angeles division agreed that there is more demand on the bulk side for California garlic.
Miguel Usabiaga of GAB in central Mexico said that consumption of garlic is up.
"The Mexican market wants quality -- they don't mind paying a high price," Mr. Usabiaga said, adding that while Chinese garlic is not allowed into Mexico, along the coast and in the Culiacan area, some Chinese garlic that was brought in illegally could be found. He said that a lot of garlic is coming into Mexico from Argentina and Chile.
Michael Mantelli of Christopher Ranch said that California is "under a severe water shortage" and that the state is looking to cut back water allocation to prime garlic-growing areas by 25-50 percent. As a result, the company has to determine where it can make the "most profit per acre foot of water," he said.
Javier Usabiaga Sr. of GAB said that he and Mr. Christopher are contemporaries who are optimists.
"I think today we're harvesting something we planted many years ago," Mr. Usabiaga Sr. said.
"About five years ago, we lost the battle with Chinese garlic," Mr. Christopher said. "Now the Chinese hit themselves in the foot. It's not costing us anything. The whole market looks good for this year and next year."
Mr. Christopher told the audience -- many of whom were members of the Christopher Ranch team from around the nation -- that his salespeople are doing "a great job."
Last year, for the first time ,the United States bought more garlic from China than from California. China now has a dominant market share in the United States. But the food-safety scare several months ago that began with unsafe substances added to pet food from China brought on tighter food-safety standards imposed by the Chinese government that have curtailed that country's garlic exports.
Chinese garlic has become popular in part because it wholesales in the United States for about half the price of California-grown garlic.
Sal Vacca of A.J. Trucco opened the breakfast discussion by saying that the industry had been "forced to go into Chinese garlic."
Paul Auerbach of South Hackensack, NJ-based Maurice A. Auerbach Inc. said that a lot of business has been lost on the wholesale side and that the wholesale business "has changed tremendously over the last few years." He said that high-end, white tablecloth restaurants opt for California garlic.
Joe Lane of The Garlic Company in Bakersfield, CA, said that there are "still a lot of people who prefer cheaper garlic based on price."
Jeff Stokes of Christopher Ranch said that restaurants look at the bottom line when they are buying peeled garlic, but in bulk, customers are "switching away from Chinese [garlic]."
Doug Urbach of Christopher Ranch's Los Angeles division agreed that there is more demand on the bulk side for California garlic.
Miguel Usabiaga of GAB in central Mexico said that consumption of garlic is up.
"The Mexican market wants quality -- they don't mind paying a high price," Mr. Usabiaga said, adding that while Chinese garlic is not allowed into Mexico, along the coast and in the Culiacan area, some Chinese garlic that was brought in illegally could be found. He said that a lot of garlic is coming into Mexico from Argentina and Chile.
Michael Mantelli of Christopher Ranch said that California is "under a severe water shortage" and that the state is looking to cut back water allocation to prime garlic-growing areas by 25-50 percent. As a result, the company has to determine where it can make the "most profit per acre foot of water," he said.
Javier Usabiaga Sr. of GAB said that he and Mr. Christopher are contemporaries who are optimists.
"I think today we're harvesting something we planted many years ago," Mr. Usabiaga Sr. said.
