Parties behind the barn

Hopeless situation for onions and carrots

June 7, 2017 - Niels van der Boom - 18 comments

Arable farmers who still have carrots or onions in storage are facing an extremely grim situation. The trade in carrots is particularly bad. Buyers must be sought in livestock farming. There are more buyers for onions, although there is no balance for the grower. It is important to empty the shed.

While the onion market experienced some revival, growers of storage carrots have had a disastrous season. Stock prices did not exceed 10 euros at their peak. Traders can add up to the causes in this way: Russia locked, no demand from Poland, the German strategy of their own carrots first and an ever-growing acreage. It is a straight-up doomsday scenario for the grower.

If you don't want to incur extra costs, deposit your carrot behind the shed

Peen behind the barn
For growers who still have crates of carrots, and there are quite a few, it is important to get rid of their product. Currants in the porridge are sought. Good quality batches are slowly being sent to Poland or elsewhere in the Eastern Bloc. If the quality is not there, the question is whether the grower wants to incur costs for rinsing. About 10 euros per box. The carrots go into animal feed or to the biodigester. Those who do not want to incur additional costs deposit their product "behind the shed".

Guessing numbers
How many tons of onions or boxes of carrots are still in Dutch storage sheds and cold stores, commission agents and traders hardly dare to say. For the carrot, figures are mentioned that lie between 40.000 and 60.000 crates. With onions, in the corridors there is talk of a volume between 30.000 and 60.000 tons that has no copper. In the province of Flevoland in particular, many arable farmers have (partially) full barns.

New harvest offers no solace
Insiders have little hope for the new carrot season. The area of ​​early carrots is simply too large. Rigorous shrinkage is required to avoid disappointment in the future. A considerable supply of early carrots is now being released from France and Spain. That offers little hope for Dutch sales. Especially in view of the fact that Germany and Belgium give priority to locally grown products. The Netherlands, as a gap filler, foots the bill. Opportunities only exist in the event of a crop failure.

Poland base for onions
Sounds from the onion market show that the trade here is less in a dip. Commissioners are convinced that all barns will be emptied, without parties going back onto the land. That is only the solution for the worst quality, even when a digester does not offer an option.

60.000

boxes carrot

is stated as the extreme that still has to be deposited

Peeling companies in Poland are currently an important buyer, receiving onions of average to good quality on a zero euro basis. The best batches, and there are still plenty of them, give growers away for 1 to 2 euros. Sorters and exporters use this product to meet the demand from Africa. In view of the quality and the price level, this will continue until the beginning of July. Brazil is no longer on the market. They have their own crop. In addition, exporters no longer dare to send the current product that far overseas.

Live on old onions
The first winter onions are expected to be harvested at the end of this month, followed by onion sets in early July. They are slightly delayed. In addition, the acreage is estimated to be smaller. However, this product is mainly intended for supplies to European supermarkets. A bottom price for old onions offers little prospect for onion sets. As long as the old harvest is not finished, the market will not quickly opt for a more expensive product. This saves the onion grower from the scenario from carrot cultivation.

Cover photo: Arie van Os (@arievanos1).

Do you have a tip, suggestion or comment regarding this article? Let us know

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
18 comments
Subscriber
optimist June 6, 2017
This is a response to this article:
[url=http://www.boerenbusiness.nl/uien/ artikel/10874748/uitzichtloze-situation-voor-uien-en-peen][/url]
Nice headline to article. Markets are being kicked even further into the ground. Unnecessary and stupid.
Subscriber
sad June 6, 2017
or it is a real story. If we could influence markets with written texts, there wouldn't be so much nonsense here, but we would all have our own tropical island (or whatever your wishes were)
green left June 6, 2017
Is this allowed by the environmental inspectorate?
Skirt June 7, 2017
Carrot is over and out, the future is surplus market barring exceptions.
Glue June 7, 2017
Niels makes it clear that he knows what's going on....

Carrot acreage will have to shrink, and that will be made clear at the moment. But where has the thought 1 Europe gone?
spectator June 7, 2017
If I look at the acreage, surpluses can again be expected in the coming marketing season.

Personally, I think we've had the 7 fat years.
Expansion of onions in different areas stimulated by seed companies and gullible farmers

Carrots have been sitting on a tipping board for years, but growers have structurally looked the other way.

If the BDI index hadn't been so low in recent years, we would have had this problem 3 years ago.

we all have to grow intensive crops otherwise our heavily overvalued soil can never be used.
The grain spindle has been gone for years and hopefully the soil bubble will burst at some point.
Can the healthy companies continue in peace?

just look at the restructuring that has taken place in pigs and livestock.
We also need that in our sector.
brabander June 7, 2017
Then there is only 1 thing on it: plate in the garden!!
peer June 7, 2017
put red cabbage
Agri June 7, 2017
All this fits nicely in saving the soil, we will have to cultivate less intensively, more grain in the crop plan and less carrots and onion, chicory, etc. But for many this will not be possible for the bank. However, the shore does turn the ship.
sandman June 7, 2017
Perhaps the acreage does not need to be reduced. But many cold stores were added in recent years. And if you can cool but not trade, you can wreck your own market. By saying yes to a bad offer too soon. And thereby ruin the market. As well as pool setups in the carrot market. It doesn't make sense, but it happens.
Nonsense June 7, 2017
To act badly is pure nonsense. Supply and demand is the only thing that determines the price
Nonsense June 7, 2017
There is simply not enough demand for supply. Market manipulation by holding on to all of them for a while longer only works for a very short period of time
connoisseur June 8, 2017
red cabbage is an option if you would like the same balance as grain but more labor
polder onion June 8, 2017
Agri wrote:
All this fits nicely in saving the soil, we will have to cultivate less intensively, more grain in the crop plan and less carrots and onion, chicory, etc. But for many this will not be possible for the bank. However, the shore does turn the ship.
polder onion June 8, 2017
polderui wrote:
Agri wrote:
All this fits nicely in saving the soil, we will have to cultivate less intensively, more grain in the crop plan and less carrots and onion, chicory, etc. But for many this will not be possible for the bank. However, the shore does turn the ship.

so the bank would rather you spend your money on onions and carrots than on grain?
sand farmer June 8, 2017
Nonsense wrote:
To act badly is pure nonsense. Supply and demand is the only thing that determines the price


Do not agree with. See too many growers getting nervous, and they don't dare to say no anymore. Pool connection of certainty of getting empty is deep in it. And many commissioners have a keen sense of which grower wants to have a fixed purchase rhythm. So end of vote end of market.
Skirt June 8, 2017
The problem is that there is now so much cultivation knowledge and advice abroad that they can certainly do it just as well there as here.
Willie June 8, 2017
kjol wrote:
The problem is that there is now so much cultivation knowledge and advice abroad that they can certainly do it just as well there as here.
Nonsense June 8, 2017
Hmm, but I think that the desire for pool connection and certainty is precisely a result of oversupply. There have been too many bad experiences. And admit it, once you have to drive your onions behind the shed while 1 cents has been possible, it will make you think again the next time.
You can no longer respond.

Sign up for our newsletter

Sign up and receive the latest news in your inbox every day

Market update Onions

Spring is starting to itch at the onion market

Analysis Onions

Large onions sell well, problems with finer sizes

Analysis Onions

Nervous onion growers ensure large supply

Analysis Carrot

Free-range organic carrots prove to be scarce early on

Call our customer service +0320(269)528

or mail to support@boerenbusiness.nl

do you want to follow us?

Receive our free Newsletter

Current market information in your inbox every day

Sign up