Tare historically low

Van Meir onion pool B averages at 5,54 euros

14 April 2017 - Niels van der Boom - 3 comments

'Great juin. No market.' Renée Menkveld, of Van Meir Onions & Potatoes, couldn't have summed it up more effectively. The result of pool B is an average price of 5,54 euros per 100 kilos.

That is a very different picture than the average price of 19 euros that was realized last year. There was simply no more in the market. However, the participants are satisfied with the achieved pool result.

5

procent

is the average tare percentage

Tare historically low
The average price, of 5,54 euros per 100 kilos, is not the lowest result since the onion pool came into existence. In the 2011-2012 season, only 1,73 euros per 100 kilos was achieved.

In the past 3 seasons, the price level was respectively 19,05, 7,71 and 16,91 euros per 100 kilos. The average tare percentage of pool B was 5 percent. 'Historically low', is what Menkveld calls it. The pool has a duration of 12 weeks, from week 52 to week 11. Then pool C takes over.

Ask for coarse onions
The onion man is clear about the reasons for this sad result: 'Where we last year had a very broad sales enjoyed, it was now a lot less. Coarse onions were easy to place. For example, we were able to ship a small volume to Malaysia. Selling the middle grade was, and remains, a problem. On average, the arctic onions are somewhat less coarse. Fortunately, we were able to sort throughout the period and bring value to the product. You always hope for more, but the growers are grateful to us for this.'

Missing sorter margin
Another important point is the margin between the grower and the sorter. 'It simply wasn't there,' says Menkveld. 'Never before have growers asked so many questions about the stock exchange listings. A frequently heard argument was that the price stated on the signs could not be realized in the trade. That was a direct result of the small margins. Sorters did not buy more than was necessary. This discussion creates noise in the market. However, we were not bothered by that in the pool context.'

The volume in the pool will increase in the coming season

Pool volume growing
Signing up for the onion pool for next season has now largely been completed. Van Meir sees a plus in the volume that is sold via the pools. 'Some of that comes from existing customers. In the past, for example, he sold half freely and half through the pool system. That ratio then shifts to three quarters in the pool and a quarter free', Menkveld outlines. 'We also see growers who are new to the market. There is growing interest in this form of sales from Belgium, even if this is not yet immediately apparent in the introduction of onions. It is a growth process, which we are still working on.'

Sales of onions are not standing still
Menkveld does not want to say too much about the end of the current marketing season, for which pool C is still running: 'It makes little sense to put the current situation under a magnifying glass. We also emphasize this in our newsletter. When you are being shaved, you have to sit still. That is what we are doing and we hope that the situation will improve. The stock that is still available is of good quality and color. Remember that the onion is a fresh vegetable, although we can keep it for a long period of time. Perhaps elsewhere in the world developments are taking place that create a market. It's not like we're sitting still now. Onions are sold every week.'

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Niels van der Boom

Niels van der Boom is a senior market specialist for arable crops at DCA Market Intelligence. He mainly makes analyses and market updates about the potato market. In columns he shares his sharp view on the arable sector and technology.
Comments
3 comments
the wall 16 April 2017
This is a response to this article:
[url=http://www.boerenbusiness.nl/uien/ artikel/10874118/Van-Meir-uienpool-B-middelt-op-5,54-euro]Van Meir onion pool B averages 5,54 euros[/url]
From what size do we speak of coarse onions? I'm a layman at onion sorting!
boonions 16 April 2017
35 on
No chance 16 April 2017
What a hopeless price that is, say there has not been a week below 5 cents and they come out at 5,5 until week 11. Shows once again how sick the entire sector is...
the wall 16 April 2017
boonions wrote:
35 on

thank you
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