The Garlic Co. says garlic supplies could be tight for the coming year
The Garlic Co. says garlic supplies could be tight for the coming year
Things are lining up to result in a unique year for the garlic industry, John Duffus, vice president of sales and marketing for The Garlic Co., headquartered in Bakersfield, CA, told The Produce News. The firm private labels for a major distributor in the New York region, and the New York Produce Show & Conference is therefore an important event for company officials to attend, he noted.
The Garlic Co.’s triple-washed diced garlic is peeled, diced, triple-washed, dried and packed in bags in a method designed to extend shelf life by 45 days.“China’s crop was short again this past summer,” said Mr. Duffus. “We knew this earlier in the season, and we expected it to be between 10 and 15 percent short. But we’re now hearing that China is off as much as 30 percent.
“California is off about 10 percent this year, but with an excellent-quality crop,” he continued. “As of November our entire crop is in, and we’ve been able to figure out where we stand during the past month. Inventories are tight, but we will be able to cover all of our customers.”
Mr. Duffus said that Chinese garlic prices are not yet at an all-time high, but they are relatively high and they are staying steady at the higher cost. Customers who are price buyers typically want garlic from China, but when that crop is short they are forced to look for other sources.
The Garlic Co. is a leading player in the garlic industry. It sells more than 25 million pounds of garlic every year to retail, foodservice and industrial clients throughout the United States. Mr. Duffus said that over the past 10 years, the company has focused on its customers who are dedicated to California garlic.
“Our number one priority today is to take care of our existing customers,” he said. “We work hard to make sure that we have a clear understanding of their demands. First and foremost we make it our goal to take care of them. Garlic prices will go higher as we get into winter and spring of next year because of the already tight inventories, but we want to assure our customers that they will be taken care of.”
He said that at the Produce Marketing Association Fresh Summit in Anaheim, CA, in October, Garlic Co. executives and sales team members were explaining the current situation to its customers, adding that at this moment it is pretty much a wait-and-see situation.
“And we are stressing that despite yields being off, the quality of our crop is really good this year,” he added. “What is in storage now looks outstanding.”
Approximately 95 percent of the company’s garlic is produced in California. Mr. Duffus said the company has a strong relationship with a grower in Baja. It also sources a little from Argentina, mainly to maintain relationships and fill in customers’ needs.
“It will be next July before we know how things will unfold for the rest of next year,” said Mr. Duffus. “But we predict that the current market situation will be about the same for about a year from now.”
He added that all California growers are also saying that they are a little short in their garlic seed crop this year. While it is not dramatic, he said that the shortage doesn’t give California growers an opportunity to expand their acreage next year.
“We all grow our own seed,” he said. “It’s not an alarming situation at this point, but it is concerning. We just won’t know how this will play out until at least next July. We’re just being as smart as possible with our inventories.”
The Garlic Co. introduced its new triple-washed diced garlic in the past year. Mr. Duffus said the product is peeled, diced, triple-washed, dried and packed in bags in a method that extends its shelf life by 45 days.
“The item is performing well,” he said. “Beyond that, we are just keeping our noses to the grindstone and looking forward to the future.”