Garlic Profile

 

Overviewgarlic

Garlic was introduced into the United States in the 1700s, but its popularity did not begin to increase until the 1920s. Garlic is thought to have originated in the regions of central Asia and historically was used for medicinal purposes. Today, garlic is valued more for its flavoring and used in a wide variety of foods, although it is often still thought to possess medicinal qualities. In the United States, California is the major garlic producing state, followed by Nevada and Oregon.

Industry Structure

Garlic is marketed as certified seed or as a fresh or dehydrated product. The majority of garlic is dehydrated and used in a wide variety of processed foods. Dehydrated garlic accounts for roughly 75 percent of U.S. garlic consumption. A more limited amount of garlic is planted for seed stock. Typically, garlic grown for dehydration or for seed stock is not used in the fresh market.  Another distinction is that garlic used for the fresh market is hand-picked. Consequently, three distinct sectors have developed with separate production and distribution channels specific to the end use (Arizona State University).

Nearly all commercial garlic production is grown under contract between grower and buyer. Much of the commercial product is shipped to specific locations from which it is either processed for dehydration or moved to fresh market retail sales. The garlic industry remains concentrated in both the fresh and dehydrated markets. Only a handful of large shippers control the movement of fresh product, and an even smaller number of firms control almost all processing of the dehydrated product (ERS 2000). Gilroy, California, is known as the garlic capital of the United States, largely because that is where a large portion of U.S. garlic is grown, processed and shipped. The city also promotes itself as the home to the annual garlic festival each summer.

Demand

The average garlic consumption per capita per year is 2.0 pounds. There has been a steady increase in demand for garlic because garlic has been attributed to both an increased affinity for its flavor and the promotion of the health benefits of garlic, which include antibiotic as well as antioxidant effects, and aiding in the reduction of cholesterol and blood pressure levels.

Production

In 2017, U.S. garlic crop totaled 511.5 million pounds. In the United States, the majority of fresh and processed garlic production was concentrated in California. California harvested 33,000 acres with the average yield per acre of 155 cwt in 2017. The value of U.S. garlic production in 2017 was $390 million, up from 2016. Prices have been variable over time, from a low of $24.49 per cwt in 2004 to a record high of $76.70 in 2015. The average price was $76.30 per cwt with an average yield per acre of 155 cwt in 2017. (NASS 2017).

Globally, China is by far the largest producer of garlic producing 2/3rds of the world’s total with 468.8 million pounds in 2016. The United States ranks 11th in total garlic production. China, India and Bangladesh are the world’s leaders in garlic production.

Exports

In 2017, the United States exported 9.2 million pounds of fresh/chilled garlic valued at $16 million, primarily to Canada and Mexico. For all uses the U.S. exported 30 million pounds of garlic. (ERS 2018).

Imports

The United States is the world’s largest import market for fresh garlic, becoming the net importer (imports less exports) of garlic in 1998. In 2017, the United States imported 198 million pounds of fresh/chilled garlic valued at $211 million. The United States imported 141 million pounds of dried garlic valued at $95 million. All together the U.S. imported 339 million pounds of garlic (ERS 2018).

China accounted for the majority of total U.S. garlic imports. Other top suppliers of garlic to the United States were Mexico and Spain.  

Trade Issues

Today, China is the dominant source of imported garlic in the United States, despite the imposition of a 377 percent duty against fresh Chinese garlic imports in 1994. Garlic imports from China increased between 2001 and 2004, while Mexican imports have declined since 2001. The increase in Chinese imports is said to be due to a loophole in the legislation involving the way imports of fresh garlic from new shippers, who were not involved in the anti-dumping order, are handled. While additional legislation may close this dumping loophole, thereby decreasing imports of fresh Chinese garlic in the short run, issues of circumvention and market definitions could persist. Chinese exporters may effectively circumvent the 1994 order by shipping “like products” or using third countries to ship through. An additional concern includes increased exports of dehydrated and processed product, which is not covered under the 1994 order (ERS 2007, Arizona State University 2000).
 

Sources

Garlic: Flavor of the Ages, ERS, USDA, 2000.

Global Agricultural Trade System (GATS), Foreign Ag Service (FAS), USDA.

Increased U.S. Imports of Fresh Fruit and Vegetables, ERS, USDA, 2012.

Statistical Database-Agriculture, Food and Agricultural Organization (FAOSTAT), United Nations.

Vegetables and Pulses Outlook, ERS, USDA.

Vegetables and Melons Yearbook, ERS, USDA, 2011.

 Data by Commodity,   ERS, USDA, 2018

Garlic Photo, Bill Couch, 2008.

 

Revised June 2018.

Links checked June 2018