The annual LNCN Theme Day Onions took place in Dronten on Wednesday 10 January. The past season, the sales market, export, quality and future were discussed. Despite a large influx of growers, the volume of free sales is falling. This presents Beurs Emmeloord with challenges.
LNCN chairman Mark Brantjes sums up the season. It started early and under good conditions. After a dry period, enough rain fell. "As growers, we need a heat wave in August, but it continued to rain during the grain harvest," says Brantjes. "Because it remained wet, the quality was compromised. The pricing is meager, despite record high export figures. The onion acreage grew from 10.000 hectares in the 90s to 26.000 hectares in 2017. When will the limit be reached?"
Field selection
Brantjes reports that quality remains a concern. "For the coming season we have to ask ourselves whether the choice of plot is the right one. Soil-borne diseases are becoming more common and make plots less or even unsuitable for cultivation. We also see that onions are grown on soils that are less suitable for this."
He also reflects on trade and price formation: "Dynamics is increasingly lacking in the onion trade. In the past, the market reacted more violently and volatile. There was more free trade. If we look at the actual number of free transactions, which meet the specifications of Beurs Emmeloord, then we notice that relatively few transactions are reported in relation to the export volume."
National listing
One national onion listing allows a greater flow of information, Brantjes believes. "Emmeloord only quotes a price for the top half of the Netherlands. If we can work nationally, the pond in which we fish is much larger. Just like with the PotatoNL quotation, we can then quote every two weeks. LNCN is in favor of such a national onion listing, but it is not possible to align with all partners. Times are changing. Perhaps the future offers new opportunities."
Where a lack of transactions is clearly noticeable is the listing of the organic onions. According to Brantjes, there is not enough reliable information to make a listing. Nevertheless, there is a need in the sector for objective price information. LNCN is therefore still looking for a solution.
Collaboration
Holland Onion Association chairman Gijsbrecht Gunter takes the stage to give the sector a pat on the back. A few years ago he spoke in front of the same room with the message: "Growing and marketing onions is teamwork". According to Gunter, that has worked out well.
MH has been retained until 2023 and 280.000 tons have been sold in 1.200 transactions. The sector presented itself in The Hague, built up relationships and did a lot in the field of export. Indonesia and Panama are new export countries, together good for sales of 40.000 tons. Other export countries such as Costa Rica, China and Belarus have been retained as export countries. "This can only be achieved by working together."
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Mr Brantjes wants, just like with the potatoes, the Free Onion Trade! also help to the balls with zn national listing! These delusions must be stopped!!
If the lack of reported transactions is a concern, one could also consider moving away from reported quotes and moving to a bid and ask system.This is a response to this article: