Thai garlic farmers suffer as cheaper Chinese bulbs flood the market

[webfact]

Thai garlic farmers suffer as cheaper Chinese bulbs flood the market

By The Nation

 

 

More than 25,000 Thai farmers who grow garlic are facing steep competition from China, whose garlic is considerably cheaper due to lower production costs, the director of the Centre for International Trade Studies (CITS), University of the Thai Chamber of Commerce, Dr Aat Pisanwanich said on Monday (December 16).

 

The average cost of Chinese fresh garlic is Bt5 per kilogramme and Bt15 for dry garlic, while Thailand’s fresh garlic was priced Bt11 per kilogramme and Bt35 for dry garlic. 

 

 

Information posted at www.kasetprice.com on December 13 gave Thailand’s average retail price for dry garlic at Bt77 per kilogramme and that of Chinese garlic Bt50. Back home, Chinese farmers sell garlic on their local market at Bt14/kg. 

 

China is the largest producer of garlic and in 2016 grew 22 million tonnes of the total global production of 26.5 million tonnes, while Thailand was only able to produce 80,000 tonnes. Experts say world garlic production will increase to 31 million tonnes in 2025, with China remaining the biggest producer.

 

“The garlic market in Thailand is worth about Bt10 billion, of which Bt7 billion is Thai garlic, while the remaining Bt3 billion is imported, almost all of it from China,” Dr Aat said.

 

“Thailand needs to deal with the smuggling of garlic from China because while the official import figure is just 70,000 tonnes a year, the actual quantity is nearer to 100,000 tonnes, with much of it smuggled in and sold at a very cheap price.”

 

He added that Thailand has collected garlic import tax under World Trade Organization (WTO) regulations which is set at 27 per cent for the quota of 60-70 tonnes per year, and 57 per cent outside the quota. However, the price of Chinese garlic is still cheaper than its Thai counterpart.

 

“The government must reconsider the import measures by monitoring the retail price in China and Thailand, inspecting the import tax collection and controlling the garlic import companies,” he added.

 

Source: https://www.nationthailand.com/news/30379532

 

-- © Copyright The Nation Thailand 2019-12-17

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[tgw]

Quote

He added that Thailand has collected garlic import tax under World Trade Organization (WTO) regulations

which is wrong.

the tax is collected under a trade agreement signed by Thailand and China within the WTO legal framework.

it's not like the WTO decided anything.

[SteveK]

Well if they're selling less, Thai economics suggest they should increase the price to make up for lower sales volumes.

[BobbyL]

I predict this sort of thing will become the norm with the new China love - in from the government. 

[Thian]

The Thai and Chinese garlic are both tasteless....they should sell fresh garlic which tastes much better.

 

[Vacuum]

10 minutes ago, Thian said:

The Thai and Chinese garlic are both tasteless...

Agreed.

[SoilSpoil]

Rice more expensive than Vietnam's, garlic more expensive than China's, rubber of substandard quality. Agriculural sector is not having a great year. Thailand is not very competitive it seems.

[legend49]

Price of doing business with China, get used to it Thailand.

[fforest1]

“Thailand needs to deal with the smuggling of garlic from China because while the official import figure is just 70,000 tonnes a year, the actual quantity is nearer to 100,000 tonnes, with much of it smuggled in and sold at a very cheap price.”

 

 

I think China hides the garlic in all the meth shipments....

[Oziex1]

What's the problem,  recently the minister of saying anything told Thai industry to get out there and sell more stuff. 

Just like that. 

[RichardColeman]

3 hours ago, webfact said:

“The government must reconsider the import measures by monitoring the retail price in China and Thailand, inspecting the import tax collection and controlling the garlic import companies,” he added.

Ah, the ol' knobble the opposition plan

[Isaan sailor]

Looks like the Cha-Cha military regime shot themselves in the foot.  Too much pro-China—screw the Baht behaviour.  Now they’ll have to subsidise garlic, along with rice, rubber and other non-competitive crops.

[Thian]

The garlic from China can be up to 20 months old, tell that to the customers worldwide and they won't eat it anymore.

[trainman34014]

2 hours ago, SoilSpoil said:

Rice more expensive than Vietnam's, garlic more expensive than China's, rubber of substandard quality. Agriculural sector is not having a great year. Thailand is not very competitive it seems.

Thai's can't stand any competition as they just love ripping off their own people and anyone else who happens to want something !

[Golden Triangle]

It would appear that the Thais failed to understand basic economics, people buy the product if it is cheaper and of equal or better quality, not because it was grown in their backyard, next thing we will hear is that the government is giving subsidies because the Thai farmers don't understand how to make production more competitive.

 

This is wakey wakey time.

[ExpatOilWorker]

7 billion baht / 80 million kg = 87.5 baht/kg, not 35 at quoted!

Poor math or poor journalism or poor proofreading?

 

“The garlic market in Thailand is worth about Bt10 billion, of which Bt7 billion is Thai garlic, while the remaining Bt3 billion is imported, almost all of it from China,” Dr Aat said.

[hotchilli]

5 hours ago, webfact said:

He added that Thailand has collected garlic import tax under World Trade Organization (WTO) regulations which is set at 27 per cent for the quota of 60-70 tonnes per year, and 57 per cent outside the quota. However, the price of Chinese garlic is still cheaper than its Thai counterpart.

So Thai garlic farmers have to get efficient or go broke.... that's business, unless again they tax the hell out of any competition or subsidise Thai garlic.

[Misterwhisper]

I grow my own garlic. Brought planting bulbs from Europe. Much stronger taste than the local varieties. The gloves are larger and fleshier, too. The additional benefit I enjoy is that it keeps sluts vampires away much more effectively.

[xylophone]

24 minutes ago, ExpatOilWorker said:

7 billion baht / 80 million kg = 87.5 baht/kg, not 35 at quoted!

Poor math or poor journalism or poor proofreading?

 

“The garlic market in Thailand is worth about Bt10 billion, of which Bt7 billion is Thai garlic, while the remaining Bt3 billion is imported, almost all of it from China,” Dr Aat said.

If I recall correctly, a few years ago (10 perhaps?) Chinese garlic was banned from being imported because it contained large amounts of pesticides/herbicides which were considered dangerous to health.

 

Obviously times have changed and they've cleaned their act up, but having said that, I find both the Thai and Chinese garlic to be very weak indeed.

[Cake Monster]

Thai  producers ( not just the Farmers ) have had it too good for too long.

In the past,if they had a poor Harvest, or the price of Steel rose, they stuck out their Grubby Mitts for a Handout from the Government.

And what did the Governments do ? They gave into them. This has nurtured a Society that has little will to help itself, and also a mega amount of pure Laziness.

The Thais need to become more efficient in every aspect of their Business,s.

When I see at least one " meeter and Greeter " in Stores such as " HomePro " for every Customer, I cring at the wasteful inefficiency.

Its one of the main reasons that everything is so expensive now in Thailand compared with other SE Asia Nations.

Time to the Thais to start in on 5S, JIt, and Lean in a big way

OK ! a load of people will loose work, but they can be reskilled or put to work cleaning up the Country

 

 

[Redline]

Better get used to it.  Those trains will be bringing stuff, but they won’t be taking anything back.  Thailand is completely inefficient-although, the new complex in Pattaya might score some family types that can raise GDP, and wood ????

[GreasyFingers]

2 hours ago, Golden Triangle said:

It would appear that the Thais failed to understand basic economics, people buy the product if it is cheaper and of equal or better quality, not because it was grown in their backyard, next thing we will hear is that the government is giving subsidies because the Thai farmers don't understand how to make production more competitive.

 

This is wakey wakey time.

You maybe right but in our area there is a lot of ginger grown and processed. One of the bigger processors sends his stuff to China in boxes marked (in English) "Product of China". Go figure.

[swerve]

6 hours ago, Thian said:

The Thai and Chinese garlic are both tasteless....

 

 

I disagree.  Chinese garlic is very good quality and the Thai not so much.

[Bullie]

7 hours ago, Thian said:

The Thai and Chinese garlic are both tasteless....they should sell fresh garlic which tastes much better.

 

Maybe you should read the article, where they stated the prices of both Thai and Chine garlic...

[Golden Triangle]

20 minutes ago, swerve said:

I disagree.  Chinese garlic is very good quality and the Thai not so much.

I don't really care as I now hate garlic due to one of my ex wives ruining every meal with an overdose of the stuff. ???? 

[donnacha]

I'm just waiting for the first reports of confused garlic farmers beating the hell out of a Grab driver.

 

[Bullie]

Well, the Thai are a navel-staring bunch to begin with, but of late this is getting to a preposterous level. Economics, tourism, rice, rubber, and now garlic - it's like watching a train wreck in slow-motion.

[Bullie]

2 minutes ago, Golden Triangle said:

I don't really care as I now hate garlic due to one of my ex wives ruining every meal with an overdose of the stuff. ???? 

It is almost impossible to overdose on garlic. Overdosing on Thai (ex) wives, on the other hand is a regularly occurring phenomenon....

[ThaiFelix]

7 hours ago, Vacuum said:

Agreed.

Agreed, so you need to use much much more.

 

[Thian]

1 hour ago, Bullie said:

Maybe you should read the article, where they stated the prices of both Thai and Chine garlic...

Maybe you should think why we eat garlic? For the taste right?! And fresh ones taste much better..

 

I think you can't understand this movie but they did a blind taste test with a french chef to see which garlic was the best....

Where i come from we investigate stuff. You can understand the conversation with the chinese garlic farmer though.

Germans like to buy fresh garlic from holland which is better than french garlic.