The onion set harvest is progressing steadily and the first sowing onions are already showing up. There is currently no shortage of supply of onions. The main thing is to wait for more demand. In any case, the sector is ready for a new season. Let's go!
Sales of Dutch onions should have more of a 'boost effect' during this period. At least if that is measured against other seasons. Yet that is not the case this week. As a result, there is no smooth flow of trade yet. On balance, trade is slightly behind last season. In Goes, the quotation of onion onions suffered an average reduction of €1 per 100 kilos.
Senegal
Dutch exporters will receive notice at the earliest on Friday, August 11, when the border for onions to Senegal will reopen. This does not mean that onions have not yet been shipped to Senegal, but unloading is not possible without the green light. If no definitive answer can be obtained by Friday, August 11, this may mean that ships will have to remain offshore.
Seasonally, onion sales these weeks are mainly dependent on Africa and therefore feel one-sided. Other destinations are minimal on the market. African countries mainly purchase medium-sized sizes, but there is a deep wish that they will also purchase triplets. There is virtually no demand for this at the moment.
Limitation of drying capacity
At many sorters, the stock of triplets is growing rapidly, which causes problems for the drying capacity. Sorters try to do everything they can to get the sales of triplets going, even 'giving them away' (read: picking them up and see what the results are). And that puts a damper on the start of a new season.
The onion onions are turning out well so far, as well as the first supply of sowing onions. It is hoped that the last onion sets will contain more large onions. Due to the sales effort of the triplets, there is a large price difference in the bale price compared to the medium and coarse grading. It is hoped that Senegal will soon want to be a buyer of triplets to provide some relief to the Dutch sorter. Guinea, which as a country is an important buyer of triplets, was over-supplied with onions by the Netherlands last season. The bitter fruits are now being reaped.
High expectations
The start of the 2017-2018 season is at odds with expectations. A smaller area of onion onions and the drought, which affected an important part of the onion set cultivation area, have led to high expectations. These have not materialized yet. The past season was not a financial success for every arable farmer, which means that there is a certain eagerness among growers to do business.
The bids for onion sets are now €10, which must be lifted, stored and dried within the foreseeable future, and then delivered dry from the shed as quickly as possible. In some cases, drying costs are points of negotiation. In seed onions, business has been done for €9 for ex-field delivery and harvesting week 32. Sometimes, just like with onion onions, a process is made through storage, where the grower is then offered €10. For mature seed onions, the costs are between €6 and €7 per 100 kilos.