Garlic farmers are very frustrated this year.
Garlic, a marginal product that is not considered a major crop among agricultural products, reveals the secrets of the market.
Garlic hoarders who expected to make another profit like last year have completely lost their garlic this year.
In the end what happened?
Come and take a look with the editor.
In Jinxiang County, Jining City, Shandong Province, the "Hometown of Garlic in China", the price of garlic in the library has remained at around 7 yuan/jin from September 2016 to March 20 this year. Then the price rose all the way, and by the end of April 5
It rose to 10.5 yuan per kilogram at the beginning of the month, and then the price fell off a cliff. The price of garlic continued to fall. In more than a month, it dropped by nearly 1 yuan per kilogram, and has now fallen to around 2.2 yuan, a 79% drop from the highest price.
When garlic prices fall, garlic farmers are the first to bear the brunt. Do garlic farmers make profits or losses after a busy year?
Sui Yuxian, a villager in Suilou Village, Yushan Street, Jinxiang County, has planted 4 acres of garlic and this year earned 4,000 yuan per acre.
When the reporter saw him, he was doing some odd jobs of peeling garlic and chopping garlic in a garlic processing company.
He said: “It costs about 1,300 yuan to purchase garlic seeds for one acre of land, 380 yuan for hiring someone to plant garlic, 800 yuan for chemical fertilizers, plus pesticides, plastic films, etc., the investment for one acre of land is about 3,000 yuan.
I only earned about 1,000 yuan." Recalling the purchase price of garlic last year, which was more than 4 yuan per kilogram, and looking at this year's income, Sui Yuxian shook his head helplessly, "I don't know what the market will be like next year if it falls below 2 yuan per kilogram.
, then it will be a loss.” In addition to garlic farmers, garlic fryers and garlic stockers are having an even harder time.
The relevant person in charge of the Jinxiang Garlic Industry Information Association told reporters that at present, storage companies are basically in a state of loss across the board, with an average loss of 1,000 yuan per ton.
Why are the prices of garlic soaring and falling?
(1) The "garlic cycle" in which garlic prices rise and fall sharply has become a sample of agricultural product price fluctuations.
The price cycle of agricultural products is mainly due to the fact that the supply and demand of agricultural products tend to fall into a cycle called a "divergent spider web": once the price of a certain agricultural product rises sharply, it often attracts a large number of farmers to follow suit, and then the price plummets due to oversupply, resulting in
Farmers gave up planting, and then prices skyrocketed as yields dropped significantly.
(2) The increase in supply is the main reason for the decline in garlic prices this year.
Garlic stocks are large this year. The national garlic stocks are 3.2 million tons, an increase of 1.05 million tons compared with 2016.
There are about 3,700 cold storage caves in Jinxiang and its surrounding areas, and there are about 2,650 caves that can store garlic. Based on 800 tons per cave, Jinxiang and its surrounding areas store approximately 2.12 million tons of garlic. The garlic inventory in Jinxiang County
The volume reached about 1.55 million tons, an increase of 330,000 tons from the 1.22 million tons of garlic stocks in 2016. The garlic stocks increased by 27.05% year-on-year. The garlic stocks rose sharply, setting a record high for garlic stocks.
In view of the "speculative" factors behind the rise and fall of garlic prices, experts suggest that relevant departments should strictly control price manipulation and malicious speculation to stabilize market order.
Netizen "Zhang999887" said that garlic is for eating, not for "frying".
So, besides investing in garlic, what else can you invest in?
(1) Monetary funds.
At present, money funds are relatively low-risk investment projects, and of course the returns are slightly higher than bank time deposits.
(2) Internet finance.
Currently, car loans, housing loans and other lending projects in Internet finance are very popular; and the returns are higher than monetary funds and bank time deposits.
Better Internet financial platforms include: WeiBank Yidai, Lufax, etc.
(3) Stocks.
Stocks are particularly risky.
If you understand stocks and have promising stocks, you can invest.