China was able to boost its onion exports in the first half of 2017. In 2016, the exported volume declined due to pressure from India and low prices. Several Asian countries now demand more onions, so that the largest onion-growing country in the world can sell more volume.
During the first half of 2017, China exported 330.000 tons of onions. That is an increase of 20% compared to 2016. Last year, a total of 712.000 tons of product was exported, 18% less than in the peak year of 2015. This is evident from figures from the Global Trade Atlas. However, new opportunities are emerging on the export market, allowing China to sell more product.
India strong competitor
India had plenty of onions last year. In addition, prices were at a low level. This created competition with China. The country saw its exports to Malaysia fall by 33%, to 35.000 tons. India actually sold 60% more product in 2016. Good for 145.000 tons of a total volume of 386.000 tons. The Philippines and Vietnam are important export markets for both India and China, followed by Japan and Malaysia. Chinese exports to Russia fell by a third last year. The country is also trying to sell onions in New Zealand, but strict phytosanitary requirements prevent this.
Changing harvest
There are varying stories about the 2017 harvest. For example, the harvest in the first months of 2017 would have been lower, due to a smaller onion area and unfavorable growing conditions. And as a result of a smaller harvest in the Yunnan region, prices rose slightly. Since May, these have fallen to a more export-friendly level.
Favorable price level
China mainly depends on demand on the world market, combined with a favorable price level. The country is the largest onion producer in the world, with an estimated volume of 20 million tons, of which less than 5% is exported.