The Dutch onion market looks messy. Different harvest years and origins are intertwined. Demand is moderate for all origins.
The yield expectation from the cultivation of onion sets depends on the possibility of irrigation or receiving sufficient rainwater. The latter was a point of concern in the south-west of the Netherlands until the turn of last week. That region was refreshed with a rainfall amount of approximately 20 millimeters, insufficient to eliminate the precipitation deficit, but nice for the moment it falls.
Will the backlog be caught up?
The early onion onion varieties in particular have had a difficult time in recent growing months, meaning that the growers in question will go home with few kilos. If significant rain continues to fall with some regularity, some of the backlog can still be made up in the late varieties. On average, the sowing onions are doing better, with the northern growing regions being described as good.
Limited sales of new harvest
The trade in onion sets is at a low level. The sales of new harvest are still limited in relative terms. This often has to do with the limited availability of large onions and the right varieties. How the transition from the old to the new season will go remains to be seen. The stock of old harvest and the associated price tag are difficult inheritances. The bale price of the old harvest seems to have stagnated. For the new harvest, the price range for onion sets is between €14 and €18 per 100 kg.
Product availability factor is important
The availability of onions of different harvests makes the onion market feel cluttered. The bale price for old onions is in a price range of roughly €4,5 to €9 (all sizes), while the new crop onion onions are traded for prices starting at €30. More volume of new harvest and a more acceptable price level are expected to positively influence the demand for and sales of onions in the coming weeks. Product availability in the season is an important factor to further smooth sales of Dutch onions.