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Garlic Industry in the United States

Autor:   •  February 26, 2018  •  Case Study  •  766 Words (4 Pages)  •  360 Views

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Executive Summary – Team 18

The Opportunity

  • Rising domestic demand for garlic

The US is experiencing a rising demand for garlic, especially in the West which accounts for 31% of the US garlic consumption. This rise in demand can be attributed to the rising popularity of ethnic cuisine and, garlic being used as a ‘functional food’— one that imparts both taste as well as vital nutrients. For this reason, the consumption of garlic is projected to grow in the future.

  • Domestic supply only meets 48% of the demand

Currently around 360,000 MT of garlic is consumed in the US each year but domestic garlic growers can only meet around half of that demand. The rest must be supplemented with fresh garlic imported primarily from China. India, Argentina and Mexico also export garlic to the US, though the volumes imported are much smaller compared to China’s. Because of anti-dumping laws, only one Chinese company, Harmoni International Inc. has been allowed to export garlic to the US with the stipulation that it doesn’t flood the market with cheap garlic.  

  • Rising worldwide demand for Indian garlic

Popularity recently: demand of Indian garlic has tripled from 2012-2015. This, coupled with the fact that US domestic garlic has been consistently decreasing creates the perfect opportunity for sourcing Indian garlic to US markets.

The Solution

  • Overseas Sourcing Expertise + Competitive Prices + High Quality

Brighton’s customers include enterprises like restaurants, cafeterias and caterers in the food services industry along with food and spices manufacturers who provide industrial sales. These buyers require suppliers with expertise in overseas delivery including cold storage and logistics support as well as US customs and regulations. Brighton specializes in those logistics services, as well as in overseeing the entire process. Apart from price, another key differentiating factor for Brighton is your ability to provide high quality products from branded, high quality suppliers.

The Business Model

India: The process begins with farmers who grow and harvest garlic crop. Brighton must ensure that raw garlic is processed quickly without a loss in quality.  During processing, the raw garlic is cleaned, peeled, and quality tested.  The final product is then packed into 5 lb. boxes, shipped to domestic ports, and ultimately shipped to US entry ports.  The port should be the West Coast, where the garlic market is concentrated.

US: Once received on the West Coast, the shipment is distributed to customers including processing units that manufacture dry or powdered garlic, health supplement suppliers and local distributors.

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