Onion buyer PPA has announced the results of their ex-land pools for yellow and red seed onions. These are well above the average stock exchange quotation in the ex-country period. This despite a price recovery that was noticeable in the free market.
PPA pays a price of €8,24 per 100 kilos for yellow seed onions. That is less than the result of €11 last season, but €1,68 above the average stock market price in the ex-farm period. The result of the pool for red onions amounts to €15,48 per 100 kilos. This is the second year that PPA has a field pool for red onions. It came last season result at €12,37.
Challenging market
The company talks about a challenging market. A larger area meant more product was available on the market and quality posed a challenge. The onion onion season dragged on for a long time and this also had consequences for the sowing onion season. The processing industry in particular continued to rely on onion sets for longer.
At the end of the farm season, stock prices rose to a level of around €10. Not yet a fantastic price, but a few euros better than the €6,50 at the start. This increase was largely due to quality issues. Mildew, leaf spot diseases, but also thin foliage. Under this pressure, land lots have also been brought in to sell later. When these stored lots were sold, there was more room for the last off-shore lots.
Search for expansion
Despite the quality issues, PPA speaks of a predominantly low tare percentage. The company is looking to expand in both pools for the coming season. Both among existing and new participants. A larger acreage of plus 10% may have influenced the market, but the company apparently does not see this as a major threat. In addition, the largest volume of onions is exported in the first half of the export season and therefore tons are also required then.