Onion exports to the Philippines are increasing

The archipelago is formed by 7.107 islands. The 2 largest islands are Luzon and Mindanano; together account for two-thirds of the country's surface area. The capital Manila is located on the island of Luzon. Most of the onions exported to the Philippines go to Manila, but some islands are also served directly. The Netherlands not only exports directly to the Philippines, but also via the port of Hong Kong.

Earthquakes and typhoons
The islands' location, near the Pacific Ring of Fire and the equator, makes the Philippines prone to earthquakes and typhoons. This natural disaster has a major impact on onion exports. In years when many harvests fail, the Philippine government issues more import permits. This gives the government an important say. By issuing import permits they can influence the import of onions.

This year, many import permits were issued to the Netherlands, resulting in the export of many onions to the Philippines. Up to week 50, 21.431 tons of onions have been exported to the country. This is more than 85% more than 1 season earlier, and even 170% more than in the 2015/2016 season. Only Malaysia purchases more onions (in Asia). The Philippines has therefore overtaken Indonesia during the first months of this season.

(Text continues below the chart)

In 2017, more than 50 tons of onions went to the Philippines until week 21.000.Fine and medium grading
The Philippines are a nice bonus for Dutch exports. It is a destination where many small and medium onions go. The country prefers to receive onions in sizes 40-50 millimeters, but the 50-70 millimeter size is also widely used. Not only yellow onions are exported to the Philippines. Red onions with a fine or medium grade are also popular on the islands. 

Strict quality requirements are imposed. The onions must be in good condition and have a nice color. Moreover, they have a long journey ahead of them when they arrive. Healthy batches are therefore required. It is not without reason that the onion sector talks about 'onions suitable for Asia'.

Heavy competition
It is not only the Netherlands that is trying to gain a foothold in the Philippines. India, China and New Zealand in particular are important competitors. Exports to the Philippines often decrease in the spring, because competing countries have fresh onions and are in the region. But as long as our prices are low and quality requirements are met, the Netherlands is an important candidate for the Philippine market.

Due to the role of the government and the tough competition, it is difficult to predict what the opportunities will be in the Philippines. It is clear that the Philippines is a welcome destination because of its ability to export fine and medium onions.