Just like in the 2015/16 season, the last stretch for Van Meir's onion pool C weigh the heaviest this year. A year ago, the realized price was still somewhat cost-effective. That is certainly not the case for the 2016 harvest. This makes both the price and quality unique, in a positive and negative sense.
The sales period of pool C runs from weeks 12 to 23. During that period the average price is € 2,16 per 100 kilos. Pool A started in week 40 and achieved a result of € 12,02 per 100 kilos. Pool B started in week 52 and finished at €5,54 per 100 kilos. These are net prices, excluding VAT, storage fees and after deduction of all costs. Van Meir does not require Global Gap certification. Growers who do have this will receive a separate compensation.
Result C remains the best
The average pool price over the entire marketing season is €6,58 per 100 kilos. This price excludes quality premium, storage allowance and seed compensation. Sales periods B and C reduce the result of the smooth start. However, over a period of 10 years, the result of pool C remains at the top. It achieves a level of €14 per 100 kilos. A plus of €2,50 on top of pool A. In the 2015/16 season, pool C also scored the lowest. Then it came to €16,65 per 100 kilos.
Take courage from quality
Van Meir is very satisfied with an average tare percentage of 6,4% in the final phase of the season. “The combination of a very low price and very good quality is unique,” says employee Renée Menkveld. “There has been no structural shortage anywhere in the world. You then have to compete with local prices. A decent bale price was not possible. I can take heart from the quality. With such onion quality we can compete and benefit when there is a gap in the market. When this situation presents itself, we also score on the price. Once the market is running, you can never have enough onions.”
Quality focus pays off
According to Menkveld, good hardness and skin strength are the result of good weather during the harvest and the attention of the sector. “Growers are alert to quality, variety trials are conducted every year at our company and all batches are closely monitored. If germination tests show that a batch does not meet the requirements, it will not be placed in pool C. In addition, we now have varieties that you can send anywhere in the world.”
Market not empty
The last weeks of the export season are characterized by very broad sales at Van Meir. “We have mainly exported overseas, with Malaysia as our main focus,” Menkveld explains. “Some containers also went to Brazil, but this revival was very short-lived. Too short to give the market structural confidence. The gross yield may not have been great, but the net yield due to the low tare percentage was. It remains a vegetable trade, that's how I see it. If there is too much supply, the price will not increase. Even now there are old onions. The market is not empty.”
Pool volume does not shift
After a bad year and a bad year in pool C, participants remain hopeful of high prices, according to the onion processor. “Multi-year, the last pool scores best. We see no trend in shifting volumes. Every year there are growers who sell onions earlier or later," says Menkveld. “It is essential that growers have the quality to participate in pool C. For us, this means closely monitoring parties in storage. Sales are a matter of supply and demand. If it is not in balance, the market will not run. There must be a shortage somewhere in the world. The pool for the 2017 harvest is now full again. Growers continue to have confidence in the pool as a sales strategy and know that there will be such years in between. There is also interest in this sales form in Belgium, but this has not yet led to the release of a volume of onions. There is still a culture of fixed price contracts, especially within vegetable cultivation. We don't do that. Things are a little different for potato growers.”
Good quality expected
Van Meir will not change anything about the system of the 3 polar periods next season. However, cultivation registration is now handled purely digitally, which should ensure optimization within the company. In addition, it will start an organic seed onion pool this year. Does Menkveld expect good quality again for the 2017 harvest? “The onion sets that are now coming in are of good quality, due to the dry weather and the many hours of sunshine. They are hard and beautiful in color. We expect the same picture for sowing onions. On average, crops are in good condition, although you notice that they are now starting to show signs of swelling. They are nice locally. Sowing, emergence and weed control have generally been successful. That is a good starting position.”