Trade more uncertain than grower about the end of the onion season

The export figures from week 7 (14.081 tons) also continue the trend of lower sales. The provisional weekly export figure is the lowest since 2007, which averages 19.635 tons. The Dutch onion market operates in that playing field (of less sales of onions). When it comes to onion sales, friend and foe agree that it is desirable that the export volume should be raised to a higher level. However, it is difficult to make that wish come true immediately, because the global demand for onions is too limited.

However, insiders note that one should not be too dramatic about the export figures. Week 7 is recorded by the onion sorter as a very poor export week (the worst of this season so far), the following weeks seem to show some improvement in that respect. This would mean that the export figures for week 8 and subsequent weeks should be able to exceed the level of week 7.

Looking at the price development of onions, it is not an easy task for processors to obtain onions. The top of the transaction lists this week was formed by a transaction of 9,00 euros per 100 kg paid for super coarse onions suitable for small packaging. That puts the dot on the horizon that growers are heading for. On the transaction list of the Holland Onions Association (HOA), the average purchase price in week 9 was 7,30 euros per 100 kg based on more than 8.600 tons of traded onions.

These are small steps that the yellow seed onion quotation in Goes is taking, but this week too the onion quotation is slowly working its way up. Please note that so far this only concerns the 60% coarse sorting. The sale of fine onions still remains quite a challenge. A similar picture is also visible in Middenmeer. However, the listing in Emmeloord stagnated and also brought the mood back to calm. It looks like the stretch has come to an end for a while.

Within Europe, Great Britain is a notable customer. Last season, the English purchase up to and including week 7 was more than 62.200 tons. This year the counter stands at more than 88.300 tons, an increase of 26.100 tons (+42%). In the Far East, Malaysia is also a major buyer with over 45.200 tons. Last year this counter stood at more than 38.500 tons (6.700 tons lower / -15%).

The less regular deliveries of onions to countries on the African continent mean that sorters are hoarding the fine sizes. When the demand does arise, it is urgent for Dutch sorters to award the orders, with the result that the resources have to be sold for barely the cost price. The margin must be achieved from marketing the large onion sizes. On balance, the sorters are more uncertain about the outcome of the onion season than the grower with free onions.