Garlic,the Best Investment in China in 2009

The price of garlic in China has nearly quadrupled since March. Some say the price increase reflects a centuries-old belief that garlic can stave off disease, a reputation which has made it popular during the H1N1 flu worries this year. Wang Ling has more.

The hike came after international medical experts' recent recommendation that amid the continual speading of A/H1N1, garlic is one of the best potent natural killers of bacteria when eaten with food.

Garlic vendor Jiang Haitou lives, eats and breathes garlic every day in his job as a wholesale garlic vendor. He says he firmly believes in garlic's health properties.

"Every dish needs garlic. Garlic is a good disinfectant. We will live much longer than other people."

A Morgan Stanley report says prices for garlic have risen as much as 40-fold in some areas of China. It is something that has come as a surprise to Jerry Lou, the global financial services firm's China strategist.

"When you are thinking about gold or thinking about stocks and properties, traditional commodities like copper, iron ore—these have all done very well, they've gained between 50 to a hundred or slightly more. But with garlic, the national level of the wholesale prices have tripled. So, this is the last thing we expected in the beginning of the year, and this is it."

China's Nanfang Daily newspaper says the lower price of garlic last year may have convinced farmers not to plant crops this year. This in turn may have caused a drop in supply that could not meet this year's consumer demand.

But regardless of its higher price, the humble garlic clove remains a commodity that Chinese customers simply cannot do without.

Wang Ling CRI news.