Industry sources in Mexico and Peru are raising alarms about large volumes of Chinese garlic entering their markets through irregular channels, bypassing standard phytosanitary and customs controls. China accounts for roughly 80% of global garlic production, and according to sources, a significant share benefits from state support that artificially lowers costs, making it nearly impossible for Mexican or Peruvian growers to compete. Production costs in those countries typically run $15,000–$20,000 per hectare.
Beyond the price pressure, the food safety implications are serious. Irregularly imported Chinese garlic comes with no traceability and no verification of agrochemical use, irrigation conditions, or handling practices. Domestic Mexican and Peruvian garlic carries food safety certifications; the smuggled product does not. Sources say the garlic is entering Mexico through the same border routes used for other illicit goods, which is why many in the export sector are reluctant to speak on the record.
This issue has direct relevance for North American buyers sourcing garlic from Mexico. Watch for any increased regulatory scrutiny at U.S. ports of entry, and be aware that downward price pressure on Mexican garlic may be partly driven by this informal supply rather than legitimate market dynamics.