Senegal has retroactively introduced a quota for the import of 65.000 tons of onions. What consequences does that have? Subscribe to 'Onion Market'.
Senegal decided to issue the license on Wednesday, September 27, because the market is oversupplied with Dutch onions. The quota states that from September 1, 2017 to December 1, 2017, exactly 65.000 tons of onions are allowed into the country. This means the country is taking matters into its own hands.
Africa specialist Peter Beemsterboer estimates that 25.000 tons have already been loaded in September. "This means that from now on, 40.000 tons of onions can still go to Senegela. That is only 4.000 tons per week."
Bad news for the onion market
Last year, the Netherlands exported 30 tons of onions to Senegal in 170.000 weeks. That amounts to 5.600 tons per week. This is bad news for the onion market, which is already in a bad position. "This is the consequence when all kinds of parties continue to send onions haphazardly, especially when there are already sufficient onions available."
Ruining the market
Beemsterboer already saw it coming. "The good thing about it is that it regulates the market. If importers lose money, we don't get paid either. Exports must be made according to the needs of imports. In the past this regulated itself, but in recent years it has continued to "As a result, you ruin the market there, but also here. And in the end the grower pays the price." Earlier this year, the exporter wrote another one here burn letter about.
In addition to Senegal, Mauritania has also put limits on imports. Importers in the country decided last week not to import anything temporarily.
The export of onions to Senegel has increased considerably in recent years.