Onion exporters positive about sales to Nicaragua

Central America is a popular market for red Dutch onions, but Nicaragua is an exception. They only import yellow onions with a size range of 45 millimeters to 80 millimeters. The onions must meet Dutch quality standards and, just like in Panama, are inspected for nematodes.

In the first half of the Dutch onion season, many onions go to Nicaragua and there is little competition. In the second part of our sales season, we will switch to onions from regional cultivation. This image is also reflected in surrounding countries (including Honduras and Guatemala). The moment these countries consume their own harvest, the Netherlands is no longer interesting; we are then too expensive.Nicaragua has 6 million inhabitants and is 3 times the size of the Netherlands (130.373 km2).

Export increase
In the first part of this season, Central America is well represented as a buyer of Dutch onions. The top 20 most consuming countries include 4 countries from Central America: Nicaragua, Panama, Haiti and Honduras. Together they already purchased 38.470 tons of onions this year. Compared to last year, this is an increase of 15%.

Of these countries, Nicaragua purchases the most Dutch onions. Up to and including week 47, 11.575 tons. For Nicaragua this means an increase of 22% compared to last year and even an increase of 150% when compared to 2015.

Unpredictable government
Local governments have an important role in exports to Central American countries. They try to regulate imports through import increases or by issuing more/fewer licenses. The governments in Central America are also very unpredictable. Measures imposed change from year to year, which sometimes makes it impossible to draw conclusions.

An important reason for the high export increase is that considerably fewer import restrictions have been imposed this year. This has allowed Dutch exporters to try their luck. The whims of the government will determine whether exports to Nicaragua and other countries in Central America will increase in the coming years. 

Exporters indicate that the prospects are favorable, but political measures will be decisive. How these will turn out is determined by our own production. It is also important what the onion harvest in the Netherlands looks like in terms of availability and quality. A relatively large number of Dutch onions are currently going to Central America. This can be disadvantageous for local growers, which may cause governments to decide to impose more restrictions. A healthy balance between supply and demand is indispensable.