Never before have there been so many onions in the Netherlands. This is apparent from the CBS harvest estimate. How does the onion sector react to these figures and what are the noises about the quality of onions this year?
Statistics Netherlands published the harvest estimate figures on Tuesday, October 31. A number of eyebrows must have raised when the gross yield of seed onions was read. With a total of 1.513 million tons of onions, the 2017 crop year has one record in gross yield of seed onions.
Shock effect?
Is the market very shocked by these figures? The answer is no. Sorters and exporters are putting their shoulders to the wheel and are increasingly entering the onion market. Exports are continuing at full speed. Week 41 records an export figure of 35.356 tonnes and a similar export figure is also expected for week 42. According to a trader, we should not be surprised if this number is also achieved this week (week 44).
More transactions
Because exports are going well, more transactions are being made. Most sorters and exporters still have sufficient supply, because they bought in bulk at the start of the season and the supply from the grower is available quite easily. Yet we see that there is more movement on the market. There is sufficient interest for beautiful lots, in terms of color or size. The party must be healthy.
The upward trend is reflected in the mood recorded by Beurs Emmeloord. They change the mood from 'calm' to 'price-oriented', which means that supply and demand are closer together. The regional stock exchanges in Emmeloord and Middenmeer recorded unchanged this week.
However, prices are rising in Goes. For the 30% to 60% coarse, prices are between €6 and €6,75, a difference of €0,125 compared to last week. This week, a positive difference of €60 was even recorded for the 0,25% coarse onions. These prices are between €7 and €9. The onions are particularly fine in the southwest, so it is not surprising that the prices for the coarse grade are slightly higher there.
Bale prices increased slightly across the board last week and remain at the same level this week.
Quality
It is good that the market is picking up. The danger this season lies in the quality of the onions. Last week we already reported that there were (mainly) in the southwest quality problems are. This week the stories become more persistent and are not just limited to the South West.
There are a lot of problems with shot this year. This is very early for the time of year. A lot of rain fell in September and a lot of rain also fell in places in June, after a period of drought. Due to the wet conditions, there are problems with the quality of onions (fusarium and bacterial acid) throughout the Netherlands.
After a year in which the onions were of good quality, quality will be an issue this year.