Garlic seems more interesting than stocks or real estate

In China the price of garlic harvest varied but "investors" cause other little natural variation.

 

Jinxiang the region in Shandong province is considered the capital of garlic in China. Industry professionals deplore these "groups of investors" who buy when prices are low at the time of harvest, then store these tons of garlic to sell them when prices rise later in the year.

 

 

This speculation came this year in addition to bad weather conditions causing prices to record 13.4 yuan / kg in March. Last year the price had reached 10.6 yuan / kg. This new increase of prices as however fallen (8 yuan / kg) with new crops.

 

 

According to local official media, farmers usually sell their garlic at about 4.4 yuan / kg. The local government say to be sensitive to price but do not regulates it. Professionals ensure that planted acreage will rise further next year. Jinxiang region produced 1.69 million tons of garlic last year, about 7% of total production in China (25 million tonnes).

 

 

source : reuters.com