Growers and traders throw in the towel

That's the other side of the coin, which it was assumed wouldn't need to be awarded this season. However, reality pushes our noses to the facts. Purchasing additional onions appears to be a risky undertaking for the trade, which would prefer to be avoided there, which have been financially difficult in recent months.

Price drop surprises
The speed at which onion prices are falling has taken many by surprise. The overview of completed business from onion traders reporting on the Holland Onions Association (HOA) website shows that the average purchase level has fallen by 1,25 euros to 5,19 euros per 100 kg.

The volume traded in week 12 remained at 5.260 tonnes. That is slightly lower than the 5.375 tons of week 11. The weekly traded volume this season therefore amounts to an average of 6.334 tons. On the other hand, there is a price of 9,193 euros per 100 kg. The average quotation of the regional stock exchanges, of the 60% coarse sorting, amounts to 9,682 euros over the same period.

There was a considerable price difference between the trade in onions in the first half of week 12 and the second half of that week. In the first half of week 12 it was 6,66 euros and in the second half of the same week it was 3,80 euros. The volume in the second half of week 12, at 2.705 tons, was 150 tons higher than in the first half of that week. A similar price picture was observed at the regional fairs.

Malaise is part of the onion cycle
This situation in the Dutch onion landscape is not new. In the 2004 and 2008 harvest years, as a result of difficult sales, initiatives were developed to boost onion sales. It then also became clear that collective organizing is equivalent to the well-known 'frogs in a wheelbarrow effect'. You can agree with each other, but putting that into practice is still quite a challenge.

Such initiatives seem passé for today's times. The sellers will now have to use all their creativity and think along with the buyer. Otherwise the buyer will drop out in advance. This means that sometimes only the rough sizes can be monetized and the 'subsizes' must be marketed in consultation.

Russia and Poland are sorely missed
In practice, this means that the fine sizes/lots are processed into juice or undergo other industrial processing. However, the supply is so large that other sales options must also be sought. For example, medium-grade onions are sent to Eastern Europe. The sender does not discuss money in advance. Russian and Polish customers are sorely missed.

It is clear that growers and traders are throwing in the towel. The determination among growers is increasingly giving way to fear, because growers are not interested in onions being left behind the shed. It also makes it clear how vulnerable the Dutch onion market is. This will have to be taken into account in the coming years, whether we like it or not.