Argentina: focus on onion export to Brazil

Argentina is a special country in the onion sector. Just like the Netherlands, Argentina grows onions and has a production that exceeds consumption. In contrast to the Netherlands, the export of Argentinian onions is quite one-sided. While we Dutch want to have a finger in the pie on every continent, Argentina's exports are almost entirely focused on Brazil. In the past, attempts have been made to gain a foothold in Europe, but without success. Europe has not been a topic for years now. In addition to Brazil, a small part of sales takes place in neighboring countries.

In Argentina, onions are grown according to the whims of the market. If onion prices are poor, fewer onions will be grown the following year. Last year was such a bad year, which means there is a smaller acreage for onions this year. The erratic weather has also caused quality problems. One of those problems is that large temperature fluctuations have caused fungi to develop on the leaves. There were also irrigation problems in the months of June and July due to a lack of water. 

(Text continues below the image)Argentina has 44 million inhabitants and is 66 times the size of the Netherlands (2.780.400 km2).

Opportunities in Brazil?
In the Netherlands, the onion sector hopes to be able to serve Brazil again this year. Brazil was missed enormously last year and the hope is that Brazil will again become an important sales area. The quality problems and a reduction in acreage mean that the main supplier for the Brazilian market has fewer onions. Spain is also focusing on the Brazilian market. In Spain, the onions are very bad due to the long drought nice. Many Spanish onions therefore do not meet Brazil's standards.

Brazil has increased its own production this year. However, all in all, the situations in Argentina and Spain offer opportunities for the Dutch onion sector. Although no concrete figures are mentioned, there is a good chance that Brazil will enter the market with demand. 

Meeting quality requirements
If Brazil comes up with a demand, the Netherlands is one of the candidates to meet the Brazilian demand for onions. The most important problem is whether the Dutch onions meet the quality requirements. The past has shown that Brazilian importers just as quickly return a boat of onions; when the requested quality requirements are not met.

Brazil has strict requirements regarding color. The onions should be as white as possible. In the Netherlands, the majority of onions are not of very good color this year. The onions that arrived before the rain often also require fine sorting. However, due to the large onion supply, there are still plenty of parties that meet the requirements.

The entire Dutch onion sector hopes that Brazil will return to the market this season. Two questions are important here:
1. To what extent does the increased production of Brazilian onion cultivation affect imports?
2. If Brazil comes to the market with demand, will Dutch onions meet the requirements?