Poland: growing competitor in onion market

The Netherlands wants to grow high-quality onions. However, due to the weather or cultivation experience, not all onions grow well from the ground or from storage. Eastern Europe, and Poland in particular, is an important sales market for lower-quality onions.

Industrial
The majority of Dutch onions exported to Poland are aimed at the industrial market. Poland also grows onions, which are mainly used for its own fresh market. If there is a shortage of onions in Poland, for example due to cultivation problems, the Netherlands can also qualify for the fresh market if there are competitive prices.

The processing companies peel the onions and process them. These can be large companies that peel onions mechanically and process them into onion rings or onion cubes, for example, but they can also be small companies where local women peel the onions with a paring knife.

If there are onions in the Netherlands with quality problems (such as bolting), they can often still go to the industrial market in Poland. In this way, there is still a market for Dutch onions, which are at the bottom in terms of quality. This creates a floor under Dutch onion prices.

Cheap onions
There are currently quite a few batches of Dutch onions that have a quality problem. However, to date, relatively few Dutch onions have been exported to Poland. This is because the onions that Poland has grown itself have been very cheap so far and the country is still getting rid of its own cultivation.

Due to the heavy rain that fell in the summer, Polish onions contain many quality defects. In October, 80% to 85% still needed to be completed in the Warsaw region. cleared as a result of the heavy rainfall, with all its attendant consequences. Quality problems have been identified throughout the country. These bad batches have been cleaned up as much as possible. In November, onions were traded for €0,02. The transport costs from the Netherlands to Poland are approximately €0,04. It is therefore logical that Poland first gets rid of its own onions.

The cultivation of onions has grown considerably in Poland in recent years, making Poland less importing. And Dutch exporters notice this. Not only in the sale of mediocre quality Dutch onions. By expanding their cultivation, the Poles can serve more and more countries in Eastern Europe, leaving less sales for other countries.

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Exports to Poland appear to be declining further and further.

Next season
Due to all the quality problems, demand for onions will arise from Poland. Exporters expect the Netherlands to meet part of this demand. In the spring there will be more demand for Dutch onions from Poland. This is a favorable development for the Netherlands. Poland provides a bottom in the market and a refuge for parties with defects. Due to all the quality problems, it is also possible that demand for the fresh market will also arise.
Poland has 38 million inhabitants and is 7,5 times the size of the Netherlands (311.888 km2).